Bonza backer 777 Partners in court in New York

BTN News
Monday, 06 May 2024

777 Partners, the private equity firm that controls the in-administration Australian low-cost airline Bonza, is the focus of a lawsuit filed in a New York court on May 3.


The lawsuit alleges 777 is a “house of cards on the brink of collapse”.

The allegations were made by Leadenhall Life Insurance Linked Investments Fund, which says it agreed to offer 777 founder Josh Wander and 777 a credit facility of up to US$350 million - but only if 777 used assets that it 'actually owned' as collateral.

It accuses Wander of double-pledging assets, effectively turning the credit facility into an “illegal and unsecured personal piggy bank”, the lawsuit alleges.

The lawsuit also claims 777 is tied up with New York-based insurance company Advantage Capital Holdings (A-Cap), and that A-Cap is the ‘silent partner’ behind all of Wander’s businesses.

A-Cap and 777 are so intertwined, the lawsuit alleges, that A-Cap has secured “the right to control all facets of 777 Partners’ operations”.

As we reported a few  days ago, Bonza has suspended flights until May 7, while talks with administrators and stakeholders continue about the future of the airline.

Bonza backer 777 Partners in court in New York

BTN News
Monday, 06 May 2024

777 Partners, the private equity firm that controls the in-administration Australian low-cost airline Bonza, is the focus of a lawsuit filed in a New York court on May 3.


The lawsuit alleges 777 is a “house of cards on the brink of collapse”.

The allegations were made by Leadenhall Life Insurance Linked Investments Fund, which says it agreed to offer 777 founder Josh Wander and 777 a credit facility of up to US$350 million - but only if 777 used assets that it 'actually owned' as collateral.

It accuses Wander of double-pledging assets, effectively turning the credit facility into an “illegal and unsecured personal piggy bank”, the lawsuit alleges.

The lawsuit also claims 777 is tied up with New York-based insurance company Advantage Capital Holdings (A-Cap), and that A-Cap is the ‘silent partner’ behind all of Wander’s businesses.

A-Cap and 777 are so intertwined, the lawsuit alleges, that A-Cap has secured “the right to control all facets of 777 Partners’ operations”.

As we reported a few  days ago, Bonza has suspended flights until May 7, while talks with administrators and stakeholders continue about the future of the airline.