Everton’s putative new owner, 777 Partners, is being sued for allegedly borrowing £280 million unlawfully against assets it did not own or “did not exist”.
Josh Wander, the US investment firm’s co-founder, is accused of “pledged” over $350 million in such assets as collateral to Leadenhall Capital Partners LLP and Leadenhall Life Insurance Linked Investments Fund PLC.
The lawsuit filed on Friday in New York is the latest to envelop those behind 777. The company has been dogged by controversy since its founding by Wander and Steven Pasko in 2015.
This includes earlier accusations of fraud and other questionable business activities, which the corporation has consistently rejected.
The latest claimants against 777 are seeking unspecified damages and a court order barring it from violating its obligations. The complaint alleges that Wander and his group of alter ego entities “pledged” over $350 million in assets as collateral to Leadenhall, despite the fact that the assets did not exist, were not owned by Wander’s entities, or had already been pledged to another lender.
777’s representative declined to comment on litigation to Telegraph Sport.
The complaint was filed at the conclusion of a week in which 777’s airline portfolio dropped twice as Premier League permission for its ownership of Everton eluded the company.
Following the voluntary administration of Australian budget airline Bonza, Flair, a sibling company in Canada, has announced that other investors will now acquire 777’s shares.
The Premier League is likely to investigate the situation at Bonza, which may require guarantees that no other companies in the 777 stable are in jeopardy.
However, sources close to the talks disputed that the scenario would jeopardise efforts to acquire Everton’s ownership. One insider said that “multiple executives” had passed the league’s owners’ and directors’ tests.
According to the league’s rulebook, unrelated insolvencies involving two or more entities pertaining to a prospective director may disqualify him or her from serving.
There was no indication that Flair was poised to fold, but the low-cost airline attempted to dispel any speculation by posting a statement confirming the acquisition of 777 shares.
Everton owner Farhad Moshiri agreed to sell his 94.1% ownership in the club to 777 in September, but the approval process has been difficult.
This week, 777 Partners made a late payment of about £16 million to Everton’s working capital, calming fears after Bonza abruptly halted flying.
The week’s events have created doubts about Everton’s capacity to generate enough finances to complete a £500 million purchase. Additionally, Everton has began talks with debt restructuring experts, raising fresh questions about the delayed takeover.
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