Everton takeover hits fresh roadblock amid £400m 777 Partners revelation
777 Partners’ problems continue far beyond Everton and the Premier League, casting serious doubts over their liquidity.
The fact that 777 Partners’ stake in Flair was written down to close to zero and they relinquished board seats suggests a significant loss of confidence in the firm’s ability to manage its investments effectively. [Financial Review, 2 May]
The involvement of ACap, a US-based insurer with more than $500million [£400million] in debt exposure to Flair Airlines, further complicates the situation, indicating that the Miami-based firm’s financial troubles may be more extensive than initially perceived.
News of Canadian low-cost carrier Flair Airlines’ financial restructuring further casts doubts over the 777 Partners, the private equity firm that owns Flair and operates Bonza in Australia.
The announcement that an affiliate of Flair’s largest senior lender is acquiring a portion of 777 Partners’ shares in Flair and providing new non-binding debt funding raises concerns about the financial stability of 777 Partners.
777 Partners face international and external challenges to complete Everton takeover
This undoubtedly is a fresh roadblock as they aim to get started with their project at the Merseyside club.
Their failure to meet certain conditions set by the Premier League for the takeover of Everton, such as repaying a £158million debt, casts further doubt on their capability to complete the deal and manage the club’s significant debt.
The involvement of restructuring advisers and delayed loan payments by the Toffees also highlight the precarious financial situation of the club, which could be exacerbated by the uncertain future of the takeover.
The suspension of their relationship with UK PR adviser Teneo due to unpaid bills further compounds the concerns about their financial health and business practices.
These red flags collectively suggest that 777 Partners may not be the ideal owner of Everton, and their ability to fund the club’s new stadium and stabilise their financial situation is under serious question.
In other Everton news, a £1billion full Toffees buyout update has been shared by Alan Myers as Farhad Moshiri’s takeover stance emerges.
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