Pirate Bay buyer faces bankruptcy
AFP/The Local · 18 Sep 2009, 19:10
Published: 18 Sep 2009 19:10 GMT+02:00
The bankruptcy suit for the Swedish advertising and software company has been submitted to the Stockholm District Court, according to a report in Svenska Dagbladet. Global Gaming Factory X grabbed international headlines when it announced on June 30th its intention to take over The Pirate Bay.
Global Gaming Factory X was due to pay Advatar System 1,378,525 kronor ($200,204) by July 25th this year - a debt which today remains unpaid.
Johan Sellström - a former board member of the Global Gaming Factory X and Advatar Systems' Managing Director - is reportedly now tired of chasing the overdue debt. The suit states that "the debtor canot legally pay its debts, and such incapacity cannot be regarded as 'temporary'."
Global Gaming Factory X's ambitious plans to acquire Pirate Bay now seem likely to be put on hold due to question marks over the company's lack of capital.
Stockholm district court will hear the case in November, according to a spokeswoman at the court.
Global Gaming Factory has been in trouble since August 21st when trading of its shares was suspended after it was accused of financial irregularities. On September 10th, the company was kicked off equity market Aktietorget when regulators concluded it had misled investors with claims that it was set to buy Pirate Bay.
Media reports have suggested its announcement on June 30th to buy the site was merely a bluff to boost its share price.