Everton takeover: 777 Partners and MSP Sports Capital ‘unlikely’ to reach deadline agreement
777 Partners and MSP Sports Capital are “unlikely” to agree an extension to the loan repayment deadline, according to the Liverpool Echo.
Dave Powell reported via the outlet’s website on 10 April that with £158million due to be repaid by Monday (15 April) the chances of that date being pushed back are not believed to be high according to Echo “sources”.
The loan repayment is one of four conditions set out by the Premier League last month for them to grant approval for the 777 takeover, which they are “minded” to do, with the conversion of their own £180m-plus in loans to Everton into equity, placing money into a holding account to fund the rest of the current season, and proof they can pay off the rest of the stadium construction.
Powell reports that each of the four conditions carry equal weight and failure to meet any one of them means the deal cannot be approved, but after the can seemingly being kicked down the road repeatedly there a conclusion “in some form” is expected in the next week.
777 have asked for more time although it is unclear what the MSP response is [Sky News, 10 April], but according to the ECHO that probably won’t happen despite talks this week.
He wrote: “Sources have told the ECHO that it is unlikely that 777 and MSP reach an agreement to extend the deadline, and this week has largely been centred around 777 finding the more than £300m it needs to satisfy the Premier League’s checklist in order to approve the deal.”
777 Partners takeover at Everton on brink of collapse?
At this late stage it looks like there are only two possible avenues for 777 to keep their proposed takeover alive – to work out an agreement with MSP or come up with the hundreds of millions they need to get the entire operation over the line before Monday.
The former cannot be entirely ruled out but if that is considered “unlikely” then that leaves just the latter route, but since Josh Wander and company have failed to do that in the almost-30 weeks since they agreed a deal with Farhad Moshiri in mid-September it could probably be considered equally unlikely.
It is not really in MSP’s interest to agree anything if they stand to gain control of the club as things stand, having been blocked from acquiring a 25% stake last summer when fellow Everton creditors Rights & Media Funding Ltd objected to the deal.
The public message coming from 777 has routinely been one of confidence in getting the takeover completed, and both Wander and Moshiri again expressed that in letters to the Fan Advisory Board a fortnight ago.
But to have got this close to a key deadline without a breakthrough and now reportedly be asking for more time as they scramble to raise cash paints a different picture, and plays into the doubts raised repeatedly in their ability to do so along the way.
In other Everton news, a finance expert has reacted to the chances of a third-straight Toffees profit and sustainability breach to come.
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