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PCG Entertainment caught up in debt dispute from 2015 acquisition

Published: 07:29 31 May 2016 BST

Picturte of playing cards to represent online gaming
PCG has an agreement in place covering the debt

Asia-focused online gaming group PCG Entertainment Plc (LON:PCGE) has been dragged into a dispute over its 2015 acquisition CPDC.

As part of the deal, PCGE says it was agreed all cash and debtor and creditor balances would remain with the vendor Kolarmy including a US$2.7mln debt to a supplier.

That supplier debt has not been paid and now PCGE has been asked for the money despite a signed agreement that 'irrevocably and unconditionally' released it from any obligations in connection with it.

While no legal action has yet been taken, this dispute could materially affect the company's trading and financial position going forward, PCGE said.

In addition, PCGE said it is also in dispute with a principal customer that owes it money over trading terms.

PCGE is taking advice and is seeking to resolve this matter amicably.

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