Sherdog has a wordy article which probably doesn’t make much sense to many people that’s all about Xyience’s bankruptcy case. The simple summation is that the shareholders are accusing the Fertittas (via a company named Zyen) of lending Xyience money that was immediately paid to the UFC rather than, I dunno, to keep the company afloat. Then when Xyience couldn’t make return payments to Zyen, Zyen defaulted on the loan and are trying to seize Xyience’s assets:
“Thereafter, a month later [Xyience] failed to make the very first payment due Zyen in November. The Shareholder Group believes that this failure to pay was simply an orchestrated default. Consequently, Zyen issued its Notice of Strict Foreclosure, which gave it the right to foreclose under an agreement not approved by the shareholders nor in the best interest of [Xyience]. Pursuant to the notice, Zyen sought to foreclose on [Xyience’s] assets, including the trade name Xyience and energy drinks under the trade name of, among other things, Xenergy drinks.”
This is where this story seems to be going into pretty murky legal waters. Because corporate business is infinitely cut throat, I’m not sure if anything illegal has actually happened yet, but it sure looks like they’re cutting a fine line. There seems to be a number of people involved with Xyience and the Fertittas who worked in cahoots to orchestrate this asset snatch, effectively finishing the company off and leaving the investors with nothing.