777 Partners, the embattled Miami-based investment firm that backed now-bankrupt Australian start-up Bonza, will operate under a limited receivership until it pays a former executive’s legal bills, a Delaware judge ruled in a decision unsealed on August 18.
Magistrate in Chancery Christian Douglas Wright found the firm in contempt for failing to comply with previous court orders requiring reimbursement of legal expenses incurred by its former CFO, Damien Alfalla. Wright appointed attorney Shaun Michael Kelly as receiver to ensure compliance.
According to evidence, 777 Partners paid USD6.1 million to other law firms over 14 months between May 15, 2024 and July 17, 2025, while withholding nearly USD600,000 owed to Alfalla.
The court rejected the company’s claims of financial distress, saying hardship "is not the same thing as impossibility. The only defence 777 Partners offers is financial hardship. But financial hardship is no defence here. [...] And even if there were a general financial hardship exemption, 777 Partners has not actually presented evidence of such hardship," Wright stated.
"777 Partners has established, quite convincingly, that over the past 14 months, it has been able to find funds to pay legal fees (while also paying, presumably, other expenses like salaries, rent, utilities, and insurance premiums). It just wants to put Alfalla - and this court’s unambiguous orders - at or near the back of the line."
The judge ordered the firm to cover all outstanding advancement obligations, fees-on-fees, and interest, and imposed a conditional USD500 daily fine until the contempt is cured.
The receivership, limited to enforcing payments to Alfalla, will last an initial 59 days but may be extended. The decision marks another blow to 777 Partners, which faces mounting legal and regulatory scrutiny as it struggles to maintain its investments across sports, aviation, and financial services.
The order was initially issued under seal because it summarises information contained in documents designated by 777 Partners as confidential, but was unsealed after the firm failed to file a justification for continued restriction by August 15.
777 Partners initially funded and provided B737-8 MAX aircraft to Bonza, which went out of business in April 2024 after only 14 months of flying. As previously reported, the US Department of Justice investigated whether funds meant for 777 Partners’ sports investments were diverted to the now-defunct Australian airline.
The Miami-based investor was also a 25% backer of Canada's Flair Airlines (F8, Kelowna) but significantly reduced its ownership stake last year following Bonza's demise. The ownership restructuring at Flair followed challenges including aircraft seizures linked to 777's role in backing several airlines and concerns about foreign ownership influence in Canadian aviation regulations.
ch-aviation contacted 777 Partners for comment.
