777 Partners and its affiliated debtors asked the bankruptcy court on October 2, 2026, to approve the sale of a Miami Beach condominium free and clear and authorize assumption of its purchase agreement. The request proposes payment of taxes, brokerage fees and customary closing costs, with remaining net proceeds held in escrow pending resolution of asserted liens. The motion is pending in the jointly administered Signal National LLC Chapter 11 cases. Sale motion, pp. 2, 5–6
Objections to the sale request are due October 26, with a hearing scheduled for November 4, 2026, at 1:30 p.m. Central Time. The frozen evidence establishes a proposed transaction; it does not establish an approved or completed sale. Sale motion, p. 2 and docket entry
U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division
Case Number
26-90190
Petition Date
August 9, 2026, for the initial debtors; September 10, 2026, for six subsequent debtors
Case Snapshot
The claims notice identifies the initial and subsequent debtor groups and their petition dates in the jointly administered proceeding. Claims notice, pp. 1–2
Asserted mortgage obligations and escrowed proceeds
The sale motion reports that A-CAP asserted $4.62 million in unpaid principal and approximately $444,424 in interest as of August 4, 2026. These are asserted mortgage obligations. The request would hold the remaining net sale proceeds in escrow pending resolution of asserted liens, including A-CAP’s. Sale motion, pp. 2, 5–6
That proposed treatment leaves entitlement to the escrowed proceeds unresolved. The available evidence does not establish a final creditor recovery from the transaction. Sale motion, pp. 2, 5–6
The broader 777 Partners wind-down
Chief operating officer Mark Shapiro’s first-day declaration describes 777 Partners and 600 Partners as historically operating diversified investment holding companies spanning structured finance, insurance and reinsurance, aviation, sports, media and other businesses. Independent restructuring management took over in May 2024 and pursued an extensive wind-down. First-day declaration, pp. 4–7
The stated Chapter 11 objective is to monetize remaining assets, resolve creditor claims and litigation, and ultimately transfer longer-duration assets and causes of action to a liquidating trust. That trust remains a proposed objective. First-day declaration, pp. 4–7
The bankruptcy follows separate enforcement proceedings. In an action filed October 16, 2025, the SEC alleged fraud involving approximately $237 million raised through a preferred-equity offering by 777 Partners and 600 Partners. The SEC’s account alleges misrepresentations about earnings, liquidity and the ability to pay a 10% annual dividend. SEC litigation release
A separate October 16, 2025, federal announcement described criminal charges against co-founder Joshua Wander arising from an alleged scheme to defraud lenders and investors of more than $500 million. It also reported that former chief financial officer Damien Alfalla had pleaded guilty on October 14, 2025, in connection with his participation in the scheme. Federal announcement
Claims deadlines and the sale hearing
The notice accompanying the September 28 claims bar-date order sets the general prepetition claims deadline at November 2, 2026, at 5 p.m. prevailing Central Time. Governmental claims deadlines are February 5, 2027, for the initial debtors and March 9, 2027, for the subsequent debtors. Claims notice, p. 2
For rejection-damages claims, the deadline is the later of the applicable general or governmental deadline or 5 p.m. Central Time 30 days after entry of the rejection order. For claims affected by amended schedules, it is the later of the applicable deadline or 5 p.m. Central Time 14 days after mailing notice of the amendment. Claims notice, p. 2
The condominium sale request has its own October 26 objection deadline and November 4 hearing. Court approval remains pending, and the proposed escrow arrangement leaves the asserted liens to be resolved. Sale motion, p. 2 and docket entry
Sources
Sale motion, pp. 2, 5–6 /documents/1faba148-0c04-49a0-9b93-ec082727c551/
Claims notice, pp. 1–2 /documents/304fc2e5-24be-426c-9020-9962023de508/
First-day declaration, pp. 4–7 /documents/81dd7d0d-a498-463d-954e-115473fbfb81/
Federal announcement https://www.fbi.gov/contact-us/field-offices/newyork/news/founder-and-cfo-of-investment-firm-777-partners-charged-with-500-million-fraud-scheme
This article was researched and written with AI assistance, using court filings, public records, and news sources. AI-generated content can contain errors. Verify all information against primary sources before relying on it. This is not legal or financial advice. See the disclaimer.