Key facts
- John Textor has been granted a temporary injunction by the High Court to block the sale of his 90% stake in Brazilian football club SAF Botafogo.
- The injunction follows Textor's lawsuits against his UK holding company, Eagle Football Holdings Bidco, which was taken over by administrators in March.
- Administrators from Cork Gully were seeking buyers for the shares held by the insolvent company.
- The High Court's order prevents the sale of the Botafogo shares until at least September 9.
- Textor claims the holding company breached its contract by failing to pay him for the shares after its insolvency.
John Textor, the former owner of Crystal Palace, has secured a temporary injunction from the High Court in London to prevent the sale of his 90% stake in the Brazilian football club SAF Botafogo. The order, granted on Wednesday, blocks administrators from selling the shares until at least September 9, when the case will be heard again.
Textor initiated multiple lawsuits across England, the US, and Brazil against his UK holding company, Eagle Football Holdings Bidco. The company was placed into insolvency in March by its primary creditor, US investment firm Ares Capital Corporation, leading to its control by administrators from Cork Gully. These administrators immediately sought buyers for the company's stake in Botafogo.
Textor's legal action aims to regain control of his shares, alleging that Bidco breached its contract by failing to pay him for the shares following the insolvency. A previous request for an injunction was denied by a Brazilian court. However, Judge Mark Pelling KC noted that the situation in the UK is now materially different, particularly as the administrators had withdrawn a formal undertaking not to sell the shares.
Eagle Football Holdings Bidco has not participated in the English legal proceedings, only submitting a letter to the court suggesting the injunction would not risk a breach of potential sale contracts. Judge Pelling stated that the company's lack of engagement created difficulties, forcing the court to rely on Textor's account that the shares remain unpaid. Textor expressed confidence that if the holding company continues to abstain from proceedings, his ownership claims will ultimately prevail.