777 Partners - Revised Poll Added 07/05/2024

[peteblue]

I just read the complaint. To me, it’s mostly wild ramblings complaining about the corporate structure of reinsurance and several clear misunderstandings about the nature and power of a first lienholder. They twist these into a conspiracy narrative that I don’t think holds up under scrutiny.

I think it’s clear that the Plaintiff failed to do basic due diligence on its lending and is shocked to learn it’s not first in line when a basic search of UCC financing statements and the international equivalent would have given them a heads up.

They rely on some generic boilerplate definitions of “equity” in corporate asset layering that comes off as a bit naive to me.

Their own timeline also shows they knew about some of this for 3 years before filing suit and continued to lend to 777. The fact that Wanders let them record these meetings suggests it wasn’t fraud.

But the Complaint also raises some serious accusations that stand on their own regardless:

1. falsified financial account balance statements: if true, deadly to 777

2. collateral being sold without notice to the Plaintiff: fraud if proven

3. collateral “not existing”: fraud if proven

Most disturbing is the apparent lack of liquidity. 777 is clearly overextended and will have to liquidate assets or refinance to cover around $610M in credit that is being called in because of the collateralization issue.

I think a bigger danger is if regulators dig into 777s liquidity. Their reinsurance business requires pretty strict reserves.

Excellent post….

 

[pfim]

This is sort of true with 777 and sort of not. The layering of the business lets them invest reinsurance pools into other 777 ventures. They use those investments on a varied portfolio of investments which include their sporting acquisitions.

But it also is a structure limited by cash flow. They don’t have a steady income stream, rather they have to wait for premiums to replenish the reinsurance pool and then shift those to investment arms of the business.

To mitigate their cash flow issues, they borrow on lines of credit. This works while profits are coming in, and doesn’t work when they overextend or an investment tanks and they have to eat a loss.

But this is why reinsurance firms in the past have not invested those premiums in illiquid, risky and/or cash burning businesses. I would also assume they have little or no recourse should a company like ACap want to close out their position.

It was always disingenuous of them to state they invest their own money in these acquisitions, it was never their money.

 

[Walken]

No, me old mate. Nonsense. These seeds were sown 25 years ago when Kenwright walked into the boardroom. Who knows who Kenwright got into bed with to keep hold of the club? Things have just unravelled now he's dead.

That it's his pal the pension thief Phillip Green and the generous deal Bill gave him, cost us any hope of keeping away from 777, shows how much damage kenwright really did

 

[matty1878]

Why can't Mosh get the Qataris to take it on?

deloitte gone there?

 

[matty1878]

Really hope that report from the team talk bloke are correct then as we really need someone to come in take over.

There is no way Morshiri’s can still be considering 777 as viable people to sell to if they haven’t got the money and their business failing everywhere.

What happens if this falls through and Morshiri not willing to continue to pay the bills ?

teamtalk is poo but gotta be someone

 

[Goat]

Thank God for the fit and proper owners test.

Thanks a lot Mr Masters.

 

[LouReedwalkonthewildside]

Whatever isn’t bolted down will have a price come the summer

We are in for quite a ride

Don't know why but, I have this funny feeling in my gut that the stadium build is going to go tits up mate. Not lose it like but work stopping and everything at a standstill.

 

[matty1878]

Don't know why but, I have this funny feeling in my gut that the stadium build is going to go tits up mate. Not lose it like but work stopping and everything at a standstill.

the club is mate

 

[matty1878]

Thank God for the fit and proper owners test.

Thanks a lot Mr Masters.

?

 

[Goat]

Don't know why but, I have this funny feeling in my gut that the stadium build is going to go tits up mate. Not lose it like but work stopping and everything at a standstill.

Are we back to Big Red taking it off us??

@MikeH72

 

[davids]

Don't know why but, I have this funny feeling in my gut that the stadium build is going to go tits up mate. Not lose it like but work stopping and everything at a standstill.

It did here in Valencia,for over a decade.

 

[LouReedwalkonthewildside]

Are we back to Big Red taking it off us??

@MikeH72

More like us fans having a whip round after games at home Goat to keep the brickies happy.

 

[Exeter_Gently]

Don't know why but, I have this funny feeling in my gut that the stadium build is going to go tits up mate. Not lose it like but work stopping and everything at a standstill.

Unless Downing and Bell step in again.

 

[Simon Buttle]

Are we back to Big Red taking it off us??
@MikeH72

Even if that were a possibility, I doubt their fans would accept anyway. Also it would take another 6 months (plus the cost) just to change all the EFC/Blue related stuff out of the ground and swap it for LFC/Red.

 

[pfim]

That it's his pal the pension thief Phillip Green and the generous deal Bill gave him, cost us any hope of keeping away from 777, shows how much damage kenwright really did

Step too far. RMF or their predecessor was gone and brought back under Moshiri’s watch. Kenwright isn’t approving interest bearing debt unless it’s at Moshiri’s behest.