pfim
Player Valuation: £40m
Again, I'm no lawyer, but that chart that Goat posted earlier actually gives some information.But in this example that you give, the two creditors seek to obtain the assets that the loans were secured on, they don’t try and obtain the money from wherever the debtor has spent their money. Say the debtor spent the money on a holiday, the creditor doesn’t get to ask Jet2 Holidays for their money back.
I appreciate that 777 didn’t spend the money on a holiday with Jet 2 Holidays, but they have used their money to provide an UNSECURED loan to Everton. Said loan to Everton has no security from Everton, and no security to either of 777’s creditors. Everton have never been used as an asset to secure any loan involving 777.
My conclusion is that it’s a bit of a reach for either creditor, whether it be A-Cap or Leadenhall to claim they have a right to the money loaned to Everton, when the security for their loans to 777 were other assets, and not Everton Football Club.
Separately, and I know you haven’t made this claim, I don’t for one minute think Everton could possibly be liable when it comes to proceeds of crime or whatever. That’s like saying I would be liable if I took a loan from HSBC, and HSBC were later found to be involved in criminal activities. The FBI would not be looking at me in such circumstances!
There is some security (unitranche) to the prior 777 debt, it's junior to RMF but it does state it has collateral (likely insufficient) behind it. It also states that at the beginning of June, ACap foreclosed (for lack of a better term) on the 777 assets, which includes the debt to Everton. Typically in the loan documents it will state something to the effect of "777 Partners and/or its Successors" to cover this scenario.
As for that last part, I don't think Everton could be criminally liable. But if the funds were paid to what turns out the wrong company, the money will still be owed and already paid by Everton to the wrong party. Undoing that would create a bigger mess.