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Old 10-09-2006, 02:39 PM
sbj99 sbj99 is offline
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Join Date: Oct 2006
Posts: 27
Default Re: Odds of Party collapsing on Saturday?

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If Party does not have the funds to pay all of those who cashout

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This is the false premise in your argument.
Today, Party is, what, a 1.6 billion company?
It is absurd to even think that a 1.6 billion company can not raise something between 0 and 192.6-132.9 million to pay out these cashouts.

I mean, Dikshit personally owns close to 30% of that 1.6 billion company. Wouldn't you think it's even in his personal interest to raise the funds? Theoretically, if all else fails, they could issue a corporate bond and Dikshit would provide the cashout money for American fish from his pocket money

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Do these guys really believe that their non-US business is going to do well if other sites still cater to the US? I think most of us agree that the success of any poker site is dependent on the american fish.

That said, it's possible that the big guys at Party could take their losses and walk away. They can't be so naive to think that their business will be ok without their US customers can they?

btw- they would need to borrow quite a bit more than the difference between current cash and deposits. They would need cash to fund the business as it trasnforms. I have no idea how much this would be, but I'm sure it's not insignificant.
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