Randy wins £25m

[PaulTheVillan]

Link

Aston Villa owner Randy Lerner wins £25 million court battle

Oct 16 2011 by Adam Aspinall, Sunday Mercury

ASTON Villa owner Randy Lerner has won a £25 million legal case against his former investment company.

The soccer supremo had paid the money into a New York hedge fund firm, Paige Capital Management, in 2007.

But the company later refused to return the cash – sparking the legal action.

Now the firm, owned by sisters Michele and Jessica Paige, has been ordered to return the money after a court ruling in Delaware, USA.

Mr Lerner invested $40 million (£25 million) in the company in 2007.

The soccer boss was hoping others would be attracted to the hedge fund, and he could share in future profits.

But court papers say new investors never materialized and his £25 million – which at one time represented 99 per cent of the fund’s assets – was held onto by Paige Capital.

Mr Lerner is said to have first tried to withdraw cash from the company in January 2009. Other requests followed but he claimed the firm had “hidden” his money and “steadfastly refused to disclose” what they had done with it.

The billionaire took over Aston Villa in 2006 and invested heavily in the ground and players.

But the club has seen a scaling back of investment in the last two seasons, with high-profile names like Ashley Young and James Milner sold.

At a previous court hearing, Paige Capital attempted to claim Mr Lerner wanted his investment returned because his empire was experiencing financial difficulties.

Crisis

But the Delaware court judge, Chancellor Leo Strine, rejected the arguments.

He said: ‘‘I find no reliable basis to conclude that the Lerner Fund was in emergency mode, or faced a liquidity or solvency crisis.

‘‘As a matter of contract law, I conclude that the hedge fund manager’s refusal to honor the withdrawal request and return the seed investor’s (Lerner) capital in full was a violation of the Seeder Agreement and a breach of contract.

“I order a remedy requiring the immediate return to the seed investor of all of its capital and of an award of interest to compensate for the delay.”

Court documents show an email from Paige Capital had warned Mr Lerner against starting a costly legal action. It stated: “You cannot win because you will spend more litigating than we’re fighting over… we decide the best way to protect the funds, and your opinion is irrelevant.”

A spokesman for Aston Villa refused to comment last night.

adam.aspinall@

sundaymercury.net

[dave.woodhall]

Without criticising him or anyone involved in the case, especially not incredibly expensive lawyers, the sad thing for society is that he probably won't notice the money and can afford to do this on a point of principle.

[Salsa Party Animal]

25 millons pounds is lot of money to Randy. IT is probably his 4 % of his wealth. assuming his wealth is 625 milions pounds

[Greg N'Ash]

well that Ivanhoe's new contract paid for.......

[Dave Clark Five]

Should this thread title be preceded by 0% Villa?

[joe_c]

"It won't change my life" he said with a degree of justification while holding an outsized cheque presented to him by Page 3 stunner Gail Tuesday.

[robbyfvillain]

Winning the court case and receiving the cash may well be 2 different things though.

So I doubt Randy is spending it just yet.

[Phil from the upper holte]

He can save it for January

[Risso]

Up to the minute reporting there.  He won the case back at the start of August!

[pauliewalnuts]

I read the original reporting of that.

There was a telling line n the coverage where the people running the hedge fund claimed that Randy was after his money back because the Lerner family were under extreme financial duress.

[Risso]

I read the original reporting of that.

There was a telling line n the coverage where the people running the hedge fund claimed that Randy was after his money back because the Lerner family were under extreme financial duress.

Indeed, here:

http://www.heroesandvillains.info/forumv3/index.php?topic=44361.msg1864073;topicseen#msg1864073

[N'ZMAV]

That should get us a couple of decent midfielders.... ; )

[Concrete John]

“You cannot win because you will spend more litigating than we’re fighting over… we decide the best way to protect the funds, and your opinion is irrelevant.”

The whole Villa thing aside for a moment, that is an apalling way to speak to someone that's given your firm £25m!

[eastie]

well that Ivanhoe's new contract paid for.......

Dont be silly greg, it will go on the browns if anybody, not us!

[Scott Nielsen]

“You cannot win because you will spend more litigating than we’re fighting over… we decide the best way to protect the funds, and your opinion is irrelevant.”

The whole Villa thing aside for a moment, that is an apalling way to speak to someone that's given your firm £25m!

Indeed. But they are into distressed debt so not exactly nice people, are they.

On what basis Randy went in with 25 million in the first place is an interesting question. They had no track record so must have made a great pitch. Or perhaps poor financial judgment by Randy.