Regina-based Input Capital, a company that provides finance to farmers, secured a $ 2.8 million judgment against Bridgeway Capital Corporation after the Washington, DC-based company failed to secure a deal between the two companies.
Last summer, Bridgeway, led by American businessman Eric Blue, agreed to buy all of Input Capital’s shares for $ 1.75 per share. The deal, concluded on August 12, 2020, was to be worth $ 97.5 million.
The deal has come under public criticism, with one expert saying the arrangement had “more red flags than a bullfighting convention.” A CBC investigation revealed that Blue, dubbed a “genius patient” by one critic, was involved in a series of failed multi-million dollar deals.
On October 29, just over two months after the signing of the agreement between Input and Bridgeway, the deal collapsed without much explanation.
In a lawsuit filed earlier this year, Input said it met all the requirements to make the deal, but fell apart “due to the failure of Bridgeway and / or the ‘buyer to execute the arrangement agreement “.
The lawsuit said Bridgeway pledged to pay a 3% termination fee if the deal goes unfulfilled.
“Bridgeway has refused and / or neglected to pay the buyer’s termination fee to Input Capital,” the lawsuit said.
It appears that Bridgeway never responded to the lawsuit. On March 22, the court therefore issued a default judgment against Bridgeway for more than $ 2.8 million.
Input, which lends money to farmers in exchange for part of their future canola crop, has faced a rocky road in recent years. He has been caught up in a series of high-profile lawsuits with some of his clients.
Now he will have to attempt to recover that multi-million dollar judgment, but in doing so he joins a long line of other Bridgeway creditors.
Court documents also show Blue is threatened with bankruptcy, with 25 creditors – including individuals, corporations, banks and the U.S. Internal Revenue Service – seeking to raise millions.
The legal pressure on Blue is only intensifying. Late last month, Delaware-based Piney Lake Opportunities sued Blue for more than $ 1 million for his role in another failed multimillion-dollar deal. In the lawsuit, filed in U.S. District Court for the Northern District of Illinois, the company accuses Blue of fraud.
CBC reached out to Blue for comment, but he did not respond.