The dispute between Blue Skye and Elliott over the sale of AC Milan to RedBird has entered a new chapter. In March, Salvatore Cerchione and Gianluca D'Avanzo's company turned to the Milan Tribunal, seeking a declaration that Project RedBlack and Rossoneri Sport Investment had formed a "super de facto company" domiciled in Italy and that this entity was insolvent.
Rossoneri Sport Investment was the controlling entity of Milan, wholly owned by Project RedBlack (4.27% of which was held by Blue Skye). This legal action is part of a series initiated by Blue Skye not only in Italy but also in the USA, Luxembourg, and Hong Kong—all connected to the sale of the Rossoneri club to Gerry Cardinale's RedBird Capital.
As per information obtained by Calcio e Finanza from sources familiar with the situation, Blue Skye lost this case initiated in Milan and has been ordered to pay legal costs to Project RedBlack, Rossoneri Sport Investment, and Arena Investor (a company led by Dan Zwirn that has provided capital for some operations to Blue Skye and has consistently sided with Elliott in the deal with RedBird).
The Court found that there was no factual or legal basis to declare the existence of a "super de facto company" and that Project RedBlack or Rossoneri Sport Investment could be considered insolvent under Italian law.
According to the Tribunal, Blue Skye "has not demonstrated the existence in Italy of contracts directly managing the de facto entity or the Luxembourg-based companies it claims to participate in. Nor has it shown that management decisions of said companies were permanently made in Italy or that administrative and accounting activities or significant income production for tax purposes took place in the country."
The Tribunal deemed Blue Skye's claim "lacking in liquidity and certainty, which are necessary to support the claimants' assertion of the insolvency of the alleged de facto company."
Source: Calcio e Finanza.