Cereus Claims No Bankruptcy

Cereus made a press release assuring players that their money was safe and negotiations continued with the Department of Justice.  They also stated they would up weekly cashout limits for non U.S. players to $500 for all payment options except Visa which would go to $1000.  They stated the bankruptcy rumors are untrue.  I have a hard time believing that.

Blanca Games told their debt holders they would not be receiving any more payments.  This has forced the debt holders into what appears to be a bankruptcy process.  This is not the first time this group has defaulted on their debt.  They also failed to pay the previous owners of Ultimate Bet in full.  In seems the Blanca Games shell was created to back out of that debt obligation as it has become obvious there was really no ownership change.

On top of defaulting on two major debts U.S. players still have not received a dime.  They still have not settled with the Department of Justice, something both PokerStars and Full Tilt Poker did very quickly, and countless non U.S. players have not even received their first $250 installment weeks later.  The cashout limits have been upped but yet the pending cashouts still have not been made.  Cereus also has not paid their marketing partners and U.S. players are even still allowed to play.  Also until the last day or so Cereus has said and done nothing to assure their players everything is fine.  Their pros seem to have vanished too.  None of this is what I would expect from a company with a positive balance sheet.

Gary Wise has a great blog post that should give Cereus players at least a little hope.  I hope he is right but as he says do not create false hope here.  Even if Cereus does not completely collapse it is obvious that they have very little cash at the moment.

Edit: Gary Wise now states that he takes back that blog post.

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