Textor loses control of Eagle Football as Ares puts UK holding company into administration

Former Crystal Palace owner John Textor has lost control of his Eagle Football multi-club group after principal lender Ares Capital Corporation placed its UK holding company, Eagle Football Holdings Bidco, into administration on March 27.London-based insolvency firm Cork Gully has been appointed administrator and will immediately begin seeking buyers for Eagle's majority stakes in Botafogo, Olympique Lyonnais and RWDM Brussels.None of the three clubs is directly affected and all will continue to operate as normal, as Cork Gully's remit covers only Eagle Bidco.Cork Gully managing partner Stephen Cork said: "Our immediate priority is to stabilise the company, manage its shareholdings responsibly, and work towards securing the future of the clubs involved. We invite interested parties to come forward and will be engaging with all stakeholders throughout this process."Ares said it had been forced to act because of "events of default" under its financial agreements with Eagle, including repeated failures to file accounts and financial statements on time.Textor responded defiantly, describing the move as "the unilateral and predatory decision" of Ares to "break apart a financially viable multi-club business" that he claims is "cashflow positive."He claimed the defaults were Ares' own fault and repeated accusations that Ares had colluded with fellow Eagle investor Michele Kang to take control of Lyon without his knowledge."Ares is clearly not triggering administration with clean hands," Textor said, adding that he would work with Cork Gully to "hold Ares accountable for its actions, and clear violations of law, as we surely expect to regain control of our business."Ares was unmoved, saying it would defend its position through the proper legal channels and dismissing Textor's statements as "highly misleading and inaccurate."The administration follows a turbulent period in which Textor was forced to cede control of Lyon to Kang after the club's finances deteriorated sharply under the weight of high-interest Ares loans.French financial regulator the DNCG threatened Lyon with relegation last year, a crisis only averted when fellow Eagle investors injected fresh capital and Textor agreed to step back from the club.Textor had already sold his Crystal Palace stake to New York Jets owner Woody Johnson for £190m, though the proceeds were absorbed entirely by Ares.Crystal Palace's qualification for the Europa League was also undermined by UEFA's multi-club rules, which dropped the FA Cup winners to the Conference League because Lyon had qualified for the same competition.Despite the mounting pressure, Textor had continued to pursue new acquisitions as recently as six months ago, when he made an offer for Wolverhampton Wanderers.His stated ambition had been to float Eagle Football on the New York Stock Exchange.