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Whalehaven files against PacificNet

PHILADELPHIA (Dow Jones/AP) - Three bondholders are seeking to force PacificNet Inc. into Chapter 11 bankruptcy, claiming the gaming technology and telemarketing company is not paying its bills.

Officials of the Beijing-based company could not be reached for comment on the involuntary bankruptcy petition, which was filed Saturday in the US Bankruptcy Court in Wilmington, Delaware.

Iroquois Master Fund Ltd. of New York, Whalehaven Capital Fund of Bermuda, and Alpha Capital AG of Liechtenstein, made the filing, ticking a box that says PacificNet is not paying its debts.

According to court papers, PacificNet owes Iroquois $2.5 million in bond debt, Whalehaven about $958,000 and Alpha Capital $685,000.

Iroquois sued PacificNet over the debt in state court in New York last year, according to the company's most recent report to the Securities and Exchange Commission (SEC).

PacificNet will have an opportunity to challenge the involuntary bankruptcy filing. In SEC filings, the company has said there is substantial doubt that it will be able to continue as a going concern, due to losses.

Besides call-centre outsourcing and telemarketing services for US and Chinese customers, PacificNet installs and develops electronic gaming products.