(Bloomberg) -- GDA Luma Capital, a private equity firm specializing in distressed debt, has emerged as a potential rescuer of a takeover bid for Everton FC, according to people familiar with the situation. 

The investment firm is in discussions to offer debt financing to 777 Partners, which has been in long-standing talks to take over the struggling football club. GDA Luma is offering funds for 777 to continue funding Everton’s new stadium and meet ongoing capital requirements, said the people, who asked not to be named discussing confidential information.

New York-based GDA Luma is led by Gabriel de Alba, a veteran distressed investor and co-chair of Cirque du Soleil Entertainment Group. Its involvement follows a move by Everton’s main financial adviser, Deloitte LLP, to find new backers to save the 777 deal.

Representatives for GDA Luma and 777 declined to comment.

Everton has a long list of creditors and debts of more than £500 million ($624 million). The club is building a brand new 53,000 capacity stadium at Bramley Docks in Liverpool.

Sign up for Bloomberg’s Business of Sports newsletter.

Everton has held talks with restructuring advisers after 777 struggled to complete its takeover, Bloomberg reported this week. The Miami-based investor agreed to buy the football club last September, but recently asked for more time to complete the takeover.

Financial lenders are increasingly targeting struggling European football clubs. Firms including Elliott, Oaktree Capital Management and Ares Management have all loaned capital to clubs including Chelsea FC and Inter Milan. 

GDA Luma has looked into investments in the sports industry before. In 2022, it held talks with FC Barcelona buy a stake in Barça Studios, the club’s audiovisual and digital business. In the end Barcelona decided to do the deal with businessman Jaume Roures.

Investors in GDA Luma include Chelsea co-owner Todd Boehly and former tech executive Marcelo Claure, according to company filings.

©2024 Bloomberg L.P.