The Esk has dismissed reported conversations between 777 Partners and a potential Everton takeover rescuer as impossible to believe.
The Toffees blogger reacted via Twitter on May 2nd after Bloomberg reported that the American corporation were in discussions with New York-based GDA Luma Capital, who are supposed to be offering money for the club’s working capital and new stadium construction.
The distressed debt specialists are run by Gabriel de Alba, co-chair of Cirque du Soleil’s management company, but The Esk “can’t believe” that any private equity firm would invest in 777 at this time.
He went on to say: “Appreciate the research that goes into a story like this but I can’t believe for a second any credible PE company would consider a 777 investment at this time, no matter how distressed.”
Will Everton takeover rescue discussions fail once more?
The Esk has made his feelings about 777 and their chances of taking over at Goodison Park extremely apparent over the months they have tried and failed to do so.
Following the Miami-based outfit’s failure to meet the MSP Sports Capital loan repayment deadline on 15 April, as well as their four-day delay in providing ongoing working capital funding to the club this week, recent events raise legitimate concerns about their ability to secure the necessary financing to meet Premier League requirements.
Kieran Maguire, a finance expert at the University of Liverpool, has also noted that lenders are asking exorbitant loan rates or refusing to engage with 777 at all, deeming the firm unsafe following their deadline extension.
As a result, there will undoubtedly be concerns about the stringent terms of any future financial assistance from GDA Luma.
However, in the current situation, it appears to be a significant advance for 777 to be in realistic conversations with a business that may potentially save their takeover offer, so the following developments will be critical.
Whether Josh Wander and company’s success is good news for the club is another question, with unpaid bills and protests at other clubs they own [Telegraph, 15 September] raising a number of red flags in recent months, though questions about the identity of alternative options make it difficult to determine who the safest choice would be.
