In a twist of events following a failed merger deal, an investor in special purpose acquisition company (SPAC) 26 Capital is reportedly looking to oust Jason Ader, the SPAC's principal.
This development follows the collapse of the merger between 26 Capital and the operating entities of the Philippines integrated resort, Okada Manila.
The two companies were working together to close the transaction back in November 2022, the merger was expected to boost the prospects of the Philippines-based casino company in the US stock exchange.
Zama Capital Master Fund, a key investor, is reportedly seeking a court order to have Ader removed as the managing member of 26 Capital Holdings, the entity that oversaw the merger.
The merger faced multiple delays before Ader filed a lawsuit against Okada Manila entities in February. He alleged that it had breached its obligations under the merger agreement, calling for the Court to order the completion of the merger.
In response, the Okada Manila entities terminated the merger agreement in June 2023, citing: "Various material breaches of the merger agreement and fraudulent conduct by 26 Capital."
The Delaware Court eventually ruled in September that there was no requirement for the merger to proceed. The judge noted that 26 Capital had never disclosed that its main advisor to the merger, Zama Capital hedge fund Founder, Alex Eiseman owned more than 60% of a 26 Capital affiliate.
The aftermath of the failed merger included a law firm's separate claim against 26 Capital for work related to the merger before its collapse.
Schulte Roth & Zabel filed a $2m claim in September, resulting in a temporary restraining order preventing 26 Capital from dissolving until a hearing is held.
