John Edwards of the Last Vegas Review-Journal gives an update on the financial health of Fertitta-owned and well-known UFC energy drink partner Xyience.
In a lawsuit filed in bankruptcy court Tuesday, Xyience liquidating trustee David Herzog of Chicago accuses Fertitta Enterprises, whose family members own the Ultimate Fighting Championship and have a minority ownership in Station Casinos, and others of pursuing a “lend-to-own” strategy to gain control of Xyience, rather than buying out company shareholders.
Trustee attorney Jonathan Backman said the lawsuit spoke for itself.
Greg Garman, managing partner of Gordon Silver, which represented Fertitta Enterprises in the Xyience bankruptcy, disagreed with allegations in the lawsuit.
“We have reviewed the complaint,” Garman said in an e-mail. “The (trustee) is new to the case and his factual conclusions are incorrect. These claims were previously brought by other parties and dismissed by the court.”
Payout Perspective:
The full article provides an adequate summary of the entire situation, but essentially Herzog is seeking judgement for damages and the consolidation of Xyience and its debt holder Zyen (the company, managed by Fertitta Enterprises, that made the loans to Xyience).
More information to follow in the next few months.
whats up with these guys, are they that bad at business? first the casinos and now the drink? i hope UFC is not next.