A legal case that has impacted the takeover process at Everton has taken a fresh twist. One-time bidder 777 Partners have hit back and filed its own suit against Leadenhall Capital.
One of the main reasons why US billionaire Dan Friedkin’s Friedkin Group opted to step away from takeover talks with current Blues owner Farhad Moshiri was that they were concerned over the ongoing legal battle being fought in a New York civil court between 777 Partners and London-based Leadenhall Capital.
Leadenhall Capital alleged earlier this year that 777, who had agreed a deal to buy Everton 12 months ago only to see it fall apart at the end of May, and the company’s co-founder Josh Wander ‘pledged’ more than $350m in assets as collateral for a credit facility agreement, but knew they “did not exist” or were “not actually owned by Wander’s entities.” 777 Partners have refuted the allegations.
Leadenhall’s court filing at the time, back in May, read: “Everton is the latest shiny object of Wander’s fraudulent scheme, solvency aside.”
The case is important as 777 Partners continues to be connected to the Blues due to the fact that the firm, with the help of financing provided by A-CAP, provided more than £200m in funds to the club during the doomed takeover bid for working capital.
With allegations of fraudulent activity around the view from the Friedkin Group was taken that there was simply too much risk attached.
Another bidder for Everton, John Textor, is understood to have less issue with the perceived risk, while the Friedkin Group, who would need their own £200m-plus loan to the club to be repaid by Textor should he gain control of the club, are keeping an eye on developments and cannot totally be ruled out for a return to the table, although sources close to the group have moved to distance the company from such talks.
