PartyGaming reaches settlement with U.S.

LONDON, England -- As reported by The Wall Street Journal: "PartyGaming PLC Chief Executive Jim Ryan said Tuesday that its non-prosecution agreement with U.S. authorities over its defunct U.S. operations will help the online gambling group access capital for merger and acquisition activity.

"PartyGaming has held talks with a 'number of banks' about how debt and capital markets would respond to a resolution in the U.S.

"'We've received a favorable indication from the parties that we'd gone to that once this matter was resolved that we could have access to not only the equity markets, but to debt markets,' Ryan told reporters on a conference call. He said it 'remains to be seen' how much the company could raise.

"Under the terms of the agreement announced Tuesday, the U.S. Attorney's Officer for the Southern District of New York won't prosecute PartyGaming or any of its subsidiaries for providing Internet gambling services to customers in the U.S. before the U.S. government banned the industry in October 2006.

"In turn, PartyGaming has agreed to pay $105 million in eight installments ending Sept. 30, 2012, from existing financial resources..."