Prospective Pirate Bay Buyer Faces Bankruptcy Proceedings

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Financial problems are mounting for Global Gaming Factory, which is trying to buy file-sharing site The Pirate Bay. Its former chief technical officer now wants to see it declared bankrupt, and has started proceedings in the Stockholm district court.

The sticking point is an outstanding debt, of about 1.4 million Swedish kronor (US$200,00), to ex-CTO Johan Sellström's company, Advatar Systems.

The filing was sent to the court on Thursday and recorded on Friday. The proceedings are expected to take four to six weeks, which means that a verdict will be handed down by the end of October or beginning of November, according to a spokeswoman at the court.

Global Gaming Factory isn't aware of any bankruptcy proceedings, and is also questioning the outstanding debt, according to a statement.

Lack of funds has been a recurring theme for Global Gaming Factory since it announced plans to acquire The Pirate Bay for 60 million kronor in June.

The company was delisted from the AktieTorget exchange on Sept. 9, in part because it didn't inform its stockholders about how it planned to fund The Pirate Bay acquisition.

Also, Global Gaming Factory's CEO Hans Pandeya has recently had his boat, BMW and Harley Davidson confiscated because of an outstanding tax debt.

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