PartyGaming paid out £94Million for Cashcade, which gave INM almost £15million, which was promptly given over to their lenders. Even so, it wasn’t enough. INM went on to sell its stake in an Indian newspaper, raising another £22Million in capitol. News was, they had bought themselves some more time. Hopefully, enough to thrash out negotiations with their lenders, with whom, they had a £200Million bond. As well as the bank, who they needed to pay another £50Million, first. In which case, there probably won't be much left on the table for bond holders. Shareholders aren’t too happy either, with INM shares plummeting by eighty percent.
The powers that be, within INM, say that the recession has been directly responsible for the company’s untamed debts. They claim, people just aren’t spending their money on advertising. This does seem somewhat incredulous. Plus, as opposed to being a positive move; it looks like a serious case of bad luck, when you sell off the one thing that actually seems to be making you money; and that was, online Bingo, which is a world wide, multi million dollar industry. Without doubt, Cashcade must have been a sweet money spinner for INM. But then I guess, paying their bond holders with Bingo tickets was never going to cut it.....
This was an article by Lisa for Bingo Faces on Cashcade
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