Everton Football Club has sought the assistance of a prominent restructuring and insolvency advisory firm in light of the uncertainty surrounding the proposed takeover by 777 Partners. Reportedly, the Premier League team is still awaiting a £15m loan promised by 777 back in April, but it has yet to materialise. This latest setback has raised questions about the American firm’s ability to follow through with its acquisition of Everton.
Furthermore, 777 Partners appears to be grappling with its own financial issues, as its budget airline, Bonza, recently entered voluntary administration in Australia. Additionally, the company has reportedly terminated its relationship with its UK public relations advisors due to payment delays.
These developments have led Everton supporters and stakeholders to question whether 777 will be able to complete the takeover and how the club will sustain itself financially until the end of the season. In situations of financial turmoil, it is crucial for directors to seek professional counsel and closely monitor the company’s finances to avoid trading insolvently.
It has come to light that Teneo, a notable global financial advisory firm with a substantial insolvency division, has been engaged to advise Everton and its directors during this precarious period. When questioned about Teneo’s involvement, Daniel Butters, the Chief Executive of Financial Advisory at Teneo, declined to comment on any client situations, suggesting their discreet approach to the matter. Meanwhile, Everton declined to provide any statement regarding the situation.
The ongoing uncertainties also raise doubts about Farhad Moshiri’s ability to retain control of Everton, despite assuring fans just a month ago that the 777 takeover was nearing completion. Another group of creditors, MSP and its partners Andy Bell and George Downing, have extended loans of approximately £160m to the club. These loans are secured over the new stadium development at Bramley-Moore Dock and encompass a charge over more than half of Moshiri’s 94% stake in Everton, as disclosed in corporate documents filed in the Isle of Man. This consortium could potentially leverage its security to assume control of the club.
Despite repeated attempts to contact 777, the company has not provided any response. The situation remains fluid as Everton continues to navigate the uncertainty surrounding the proposed takeover and seeks financial stability amidst mounting concerns.