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Cases & Deals

June 7, 2024

King & Spalding Secures TRO for Leadenhall

On June 7, 2024, on behalf of Leadenhall Capital Partners LLP and Leadenhall Life Insurance Linked Investments Fund plc (“Leadenhall”), a King & Spalding team led by Leigh Nathanson, Craig Carpenito, and Brian Donovan won a motion for a temporary restraining order (“TRO”), freezing more than $600 million in assets of the Defendants.

The motion for a TRO followed a complaint filed by Leadenhall in early May 2024. In the complaint, Leadenhall alleged that Defendant 777 Partners, the prospective purchasers of a soccer team in the English Premier League, and Defendant A-CAP, an insurance holding company, conspired to “double-pledge” hundreds of millions of dollars’ worth of collateral that was supposed to be pledged only to Leadenhall, a lender, pursuant to a secured credit facility with borrowers affiliated with 777 Partners. The 80+-page complaint alleged detailed contract, fraud, and RICO claims and was covered extensively in news reports.

The motion for a TRO, filed in May 2024 shortly after the complaint, argued that 777 Partners had breached the secured credit agreement with Leadenhall, was on the brink of insolvency, and was dissipating its remaining assets on various glamor projects, including professional soccer teams. On June 7, 2024, during a hearing that lasted nearly three hours, the court granted a freeze on 777 Partners’ assets sufficient to cover the debt accelerated by Leadenhall under the secured credit facility, which totaled more than $600 million. The court further indicated that the temporary restraining order would remain in place until a full preliminary injunction hearing, expected to take place in the next 28 days, during which time the parties may take discovery on the merits of Leadenhall’s claims and irreparable harm.

The King & Spalding litigation team is comprised of Leigh Nathanson, Craig Carpenito, Brian Donovan, Mateo de la Torre, Michael Taintor, Lilian Klatskin, Michée Jacobs, and Caroline Chen.