In a complaint this week filed in New York, 777 Partners, the Miami-based investment firm attempting to purchase Everton, was called a “crumbling house of cards.”
The American investment company Obra Capital, which financed $55 million to Everton’s prospective caretakers in July 2020, is at odds with 777. 777 pledged shares in an insurance firm it owned as collateral for the loan, which was due back in a year, and promised to give Obra frequent reports on its financial situation.
When 777 requested additional time to pay back the debt, Obra consented to extend the loan three times, according to records submitted to the Supreme Court of the State of New York on Thursday. However, it lost patience in June 2022 when it exercised its option to purchase the shares of the insurance company 777 that had been pledged as security for the loan. According to Obra, this resulted in the debt being decreased from just over $22 million to $63 million, after interest had accrued.
The two companies have been at odds with these figures for some time, but Obra has now escalated the conflict by charging 777 with transferring two “cash-rich subsidiaries” to its co-founder Steve Pasko “to shield those assets from creditors” without any money passing hands.
In response to a request for comment, 777 stated that while it does not comment on active legal matters, it has in the past written off its numerous legal entanglements as petty or self-serving.
777 is presently involved in an astounding amount of cases, as Obra notes in its court document. Nine distinct businesses or people have filed lawsuits against 777 in the past 12 months due to unpaid fees, debts, or rent. More than $100 million is the total amount claimed.
The Premier League has yet to accept 777’s proposed acquisition of Everton, despite it having been publicized by the club’s current owner, Farhad Moshiri, 25 weeks ago, according to Obra’s application. Twelve weeks was the estimated time frame for league approval. Obra stated that 777’s “flashy shopping spree” has “raised questions about the source of its funding and the health of its business operations… (questions) it has not been able to answer,” referring to the stakes in seven other football teams that 777 has acquired since 2018.
It said, “777’s house of cards began crumbling down with this increased scrutiny.” However, this disagreement has a football component because RedBird Capital Partners, an investment business created and led by American banker Gerry Cardinale, owns Obra. RedBird owns a minority share in Liverpool in addition to the French team Toulouse and the Italian team AC Milan.
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