Phil Ivey the chances of collecting on the $1.9 million line of credit he granted to a Las Vegas cannabis dispensary investor may have diminished, as the company he is suing filed for a wager bankrupt.
On April 11, a company that Ivey originally helped fund in 2014 – NuVeda, LLC – filed for Chapter 11 bankruptcy. In June 2020, the poker pro was part of a lawsuit filed against NuVeda and its affiliates involving two other plaintiffs – Shane Terry and Dotan Melachsoliciting monies owed under a business loan and an equity investment in the business.
This lawsuit has still not been settled. According to court documents obtained by PokerNews, Ivey initially received a 3% equity share in return for a nearly $2 million line of credit he extended to the company. At the time, NuVeda benefited greatly from the money and financial situation of the 10-time WSOP bracelet winner.
“Ivey’s significant commercial experience and financial resources not only provided a solution in support of NuVeda’s commercial strategy, but also provided critical proof of financial viability in support of the competitive application. of Nuveda, including the amount of taxes paid,” the lawsuit states.
The Poker Hall of Famer was originally listed and approved as the owner by the State of Nevada on all six NuVeda licenses.
Terry, a co-plaintiff, was promised $1.75 million for his 23% stake in the company, but was only paid around $250,000. Ivey and Terry have since had their shares ripped off by co-owners Pejman Bady and Pouya Mohajer without the written consent of the applicants.
“Shane Terry was supposed to have been paid $1.75 million for his interest, but he only ever received $250,000,” Adam Stein Sapira bankruptcy expert with Pioneer Funding Group, LLC Told PokerNews. “Ivey was supposed to have retained a 3% stake, but that appears to have been completely eliminated. It’s unclear how much Ivey advanced on the $1.9 million line of credit or if it was repaid.”
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According to court documents, in December 2015, NuVeda’s annual license documents were due to be turned over to the State of Nevada. Meanwhile, Bady allegedly falsely submitted documents to the state removing Ivey’s license interest and redistributed them to himself and Mohajer.
As Stein-Sapir said, the amount drawn from the $1.9 million line of credit is unknown, as is the amount that was repaid to Ivey, but the 2022 Super High Roller Series European Champion is waging an ongoing legal battle to retain his 3% stake in the company.
Bady and Mohajer remain the main managers of NuVeda and its subsidiaries, which still have two dispensaries under The sanctuary name – one in northern Las Vegas and one in downtown, and Ivey is supposed to be interested in those stores. However, NuVeda recently filed for Chapter 11 bankruptcy, which could make recovery even more difficult for Ivey.
As Stein-Sapir explains, filing for bankruptcy stops litigation in state court and sends the case to a bankruptcy judge.
“Companies take this step to preserve assets and give themselves some leeway to try to reach a deal with creditors, instead of selling the assets at a discount sale or allowing a creditor to sell them. seize and take the title,” said the bankruptcy expert.
Ivey and Terry are listed with two other creditors in the Chapter 11 filing. Bankruptcy documents show NuVeda claims to have less than $50,000 in assets and between $1 million and $10 million in liabilities.
Ivey won two races at the recently completed Super High Roller Series Europe in Cyprus. But his ongoing legal battle against the cannabis company he originally helped fund appears to be a losing battle.