From real sports to fantasy sports, two gaming companies filed for bankruptcy in California on Tuesday, owing thousands of dollars to several law firms.
Fantasy Aces LP, a daily fantasy sports (DFS) operation based in Aliso Viejo, California, filed for Chapter 7 on Jan. 31 in nearby Santa Ana. The debtor, advised by Bert Briones at the Red Hill Law Group in Irvine, California, listed assets and liabilities of between $1 million and $10 million in its bankruptcy petition.
Fantasy Aces’ bankruptcy filings comes after Fantasy Draft LLC, a rival DFS provider based in Charlotte, North Carolina, terminated its proposed acquisition of Fantasy Aces assets, including its user database and corresponding balances.
“Unfortunately, because of issues identified during our due diligence, we are unable to purchase the assets of FantasyAces,” said Fantasy Draft in a statement issued Sunday.
Fantasy Aces went live in 2013 on Major League Baseball’s Opening Day and quickly expanded into all major U.S. professional sports and college football markets. In a statement, Fantays Aces said it had been actively looking to raise additional capital from multiple sources to keep it afloat but “was unsuccessful in raising such additional capital or completing a strategic transaction.”
On Fantasy Aces’ extensive list of unsecured creditors were the names of countless users of the website, as well as several law firms. The DFS company owes $55,000 to DLA Piper Canada, $20,570 to Denver-based Kendall, Koenig & Oelsner and $6,140 to Newman Law in Las Vegas. Public documents show that Newman Law assisted Fantasy Aces in a trademark filing in 2015.
Fantasy Aces stated in its bankruptcy filing that no funds will be available to unsecured creditors after administrative expenses are paid related to its Chapter 7 case.
In another sport-related bankruptcy filing, Titans of Mavericks LLC, a surfing brand and contest based in Capitola, California, filed for Chapter 11 protection in Los Angeles on Jan. 31 along with affiliate Cartel Management Inc.
Los Angeles-based bankruptcy firm Levene, Neale, Bender, Yoo & Brill is representing Titan in bankruptcy with a team led by co-managing partner David Neale. The surfing company said in a statement that it plans on using the Chapter 11 process to sell off its assets and intellectual property. (Titans lists assets of up to $50,000 in its bankruptcy against liabilities of $100,000 to $500,000.)
“The process will allow Titans of Mavericks to reach new heights in the right hands. It is time for a larger organization to gain from all of our hard work,” said Titans founder Griffin Guess, a music producer and talent manager married to supermodel Marissa Miller.
San Francisco-based Hartnett, Smith & Paetkau is listed as the “Hartnett Firm” on a list of Titans’ largest unsecured creditors. The firm is owed $40,000 for legal services. Hartnett, Smith & Paetkau represented Titans’ in a defamation case brought by Californian activist, John Ullom, that was dismissed in November.
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