he firm sold most of its assets to International Game Technology (IGT) during a foreclosure sale in January after failing to meet a payment deadline on us$ 17 million it owed to Private Equity Management Group of Irvine, California.
IGT loaned Progressive Gaming International us$ 15 million in August through a convertible note and also had other technology-related joint venture agreements. After purchasing the assets, IGT stated that it planned to merge the global operations of Progressive Gaming International into its offices.
According to a report from The Las Vegas Review Journal newspaper, Progressive Gaming International was founded in 1986 as the Mikohn Gaming Corporation before suffering a string of problems in 2007 that it was not able to recover from. The company owned patents for casino management systems that were connected to 70,000 slot machines around the world and earned revenues through the sale of the software and hardware associated with these alongside maintenance agreements. The majority of the firm’s senior management left late last year with its most recent quarterly earnings report revealing losses of us$ 63.6 million for the three months up to the end of September with revenues of us$ 13.7 million.
The largest amount claimed by an unsecured creditor is the one million dollars owed to Hasbro Incorporated following a lawsuit that was settled in 2007. In addition, IGT has claimed for us$ 322,000 followed by the us$ 101,000 owed to Harrah’s Entertainment while Gaming Laboratories International is seeking us$ 244,000. In addition, all of Progressive Gaming International’s board members are listed as unsecured creditors and are seeking payments of between us$ 2,000 and us$ 21,000.