BetonSports, Plc. announced it is closing down its offices in Costa Rica and Antigua where its U.S. operations are based. The company said that part of the business was no longer feasible due to the restraining order on the business and the charges faced by the company and people associated with it.
The U.S. market drives the vast majority of BetonSports, Plc.'s profits, and industry analysts aren't sure how the company will survive after shutting down the U.S. side of the business. Their stocks have already been frozen on the London market, but shares could end up taking an incredible hit with the closure.
The company plans to pay any liabilities to staff and creditors and repay balances due to U.S. customers depending on whether banks and other intermediaries are prepared to release funds. Industry analysts say the company may have to sell its Asian business to settle the outstanding liabilities, which will leave nothing for equity investors.
The closure also means the loss of 800 jobs in the company's two island operations.
BetonSports, Plc.'s troubles stem from charges of fraud and racketeering being brought against the company and people connected with it in the United States. For more information about the legal action being taken, please read Several Defendants Enter Not-Guilty Pleas In BetonSports, Plc. Case.