Xyience Officially Purchased


Photo property of the Ultimate Fighting Championship.

Manchester Consolidated Corporation has officially purchased Xyience Inc. according to a ruling made by Las Vegas judge Mike Nakagawa on Tuesday.

The news comes from a report by the Las Vegas Review-Journal.

The purchase involved the paying of $200,000 and the absorption of $14.8 million in debt. Nakagawa rejected a late bid by New Zealand-based Medici Group Holdings, who offered to pay $15.5 million in cash but missed the deadline.

Manchester’s purchase will reportedly cover only part of the secured debt, leaving unsecured creditors and stockholders in Xyience with absolutely nothing. That same group filed a lawsuit on Monday looking to be awarded the $14.8 million that now becomes an asset of Lorenzo and Frank Fertitta, owners of the Ultimate Fighting Championship.

Xyience, one of the UFC’s main sponsors over the last few years, filed for bankruptcy protection amid claims of intimidation and death threats in February.

The bankruptcy was filed under Chapter 11, which gives the company some time to reorganize before they move forward with their claim. The bankruptcy became necessary when the company was unable to raise $7.5 million more from shareholders.

The Fertitta brothers are reported to have close to $20 million invested in the Xyience brand.

Xyience signed a $15 million sponsorship agreement with the UFC for 2007 and had been a primary sponsor of the promotion since 2005.

Comments

<< Back to main