River Tech faces insolvency after €51m French accounts frozen

(AsiaGameHub) –   Malta-based B2B technology provider River Tech has reportedly dismissed approximately 30 staff members following a French court’s order to freeze a subsidiary’s bank account, which has significantly disrupted the company’s operations. Reports indicate that some former employees claim they have not yet received their final wages.

The firm, located in St Julian’s, has confirmed that redundancy notices were issued to employees across all its entities, including its senior leadership team, CEO, and CFO. An investigative judge at the Paris Court mandated the freezing of the company’s operational bank account, containing up to €51.2 million, on March 13th.

On March 20th, River Tech’s subsidiary, with the board of directors’ approval, voted to wind up and dissolve the corporation in accordance with Maltese law. According to River Tech, the account freeze has materially hindered its subsidiary from fulfilling its financial obligations.

River Tech’s board of directors passed a resolution similar to that of the subsidiary concerning the parent entity and has filed an action in Maltese court to wind up and dissolve the parent company.

Once appointed, the liquidator for both the parent company and its subsidiary will determine creditor payments based on legal priority and manage the winding-up process. Furthermore, the company has requested the appointment of a provisional administrator to assume an interim management role until the final determination of the case is made.

River Tech indicated that the freezing of its accounts is linked to an issue raised by France’s Central Racing and Gaming Service, a department of the National Police. The company further specified that this issue relates to a criminal investigation involving one of River Tech’s former customers.