SOURCE: Blanca Games Inc.

Blanca Games Inc.

May 05, 2011 15:59 ET

Blanca Games Issues Statement on Restructuring

Absolute Poker and UB to Focus on Non-U.S. Business

ST. JOHN'S, ANTIGUA and BARBUDA--(Marketwire - May 5, 2011) - Blanca Games Inc. ("Blanca"), operator of online poker rooms Absolute Poker and UB, issued the following statement today:

As previously stated, Absolute Poker and UB ceased their U.S.-facing operations due to recent legal developments in the United States. The company is currently restructuring and is focusing its resources on consolidating its non-U.S., rest-of-the-world operation and software business. In order to have a more efficient and successful future business, an immediate need to downsize and streamline operations significantly at both online poker rooms has been required. Absolute Poker and UB continue to operate their non-U.S.-facing business.

This decision comes after considerable review and analysis of the impact that 'Black Friday' has had on the business as a whole. The workforce has been liquidated, and the process of rehiring approximately 20% of staff in key positions has commenced. All affected employees have been informed of this necessary restructure.

A company spokesperson said: "We regret that we have been compelled to take these actions. We have worked tirelessly to create a truly amazing company that is filled with extraordinary people. We have always been and still remain fully committed to our employees and players. At the same time, we are confident that this restructuring will strengthen the company and its future."

The Company spokesperson also addressed erroneous reports that Blanca has filed for bankruptcy. The apparent confusion over this issue stems from the fact that Blanca recently informed a debt holder, Madeira Fjord, that it was terminating debt payments to, and its relationship with them. As a result, Madeira Fjord apparently filed a notice of bankruptcy in Norway. This notice has no negative impact upon Blanca, the operating company, or its brands. As stated previously, Absolute Poker and UB continue to operate their non-U.S. facing business around the world.

For non-U.S. players, Absolute Poker and UB have increased their maximum withdrawal limits to $1000 for Visa withdrawals and $500 for all other methods. The number of transactions being processed per day has been significantly increased as well. Players are still restricted to one transaction per week, but we are working to return non-U.S. withdrawals to normal service levels as quickly as possible.

As confirmed earlier this week, the company's legal counsel is in continuing discussions this week with the U.S. Attorney's office to formalize an agreement that would facilitate the return of funds to U.S. players.

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