It’s reported Milan owner Yonghong Li could be granted a further €35m loan from hedge fund Elliott Management.
The Chinese businessman had to borrow around €180m to complete his takeover of the Rossoneri, with the club itself owing €123m through two bonds listed in Vienna.
Now Il Sole 24 Ore is reporting that Elliott is prepared to offer a further €35m, raising the debt of holding company Rossoneri Sport Investment, the club’s holding company, to €215m.
It’s reported Milan owner Yonghong Li could be granted a further €35m loan from hedge fund Elliott Management.
The Chinese businessman had to borrow around €180m to complete his takeover of the Rossoneri, with the club itself owing €123m through two bonds listed in Vienna.
Now Il Sole 24 Ore is reporting that Elliott is prepared to offer a further €35m, raising the debt of holding company Rossoneri Sport Investment, the club’s holding company, to €215m.
That money could be used to meet commitments made on capital increases, with a total of €30m pledged before June, €10m of which is to be paid by March 23.
While this would increase the debt owed by Li, it can be seen as a sign that the hedge fund isn’t worried about his ability to repay them.
So far the owner has always honoured his commitments, even if the last capital increase of €3m was delayed by around 10 days.
It now remains to be seen whether Li will take another loan from Elliott, or seek to raise the money through his own resources in China.
However, Il Sole 24 Ore also reports that the Diavolo owner has a €7m loan from Teamway International, which has been used to inject capital into Milan.
The €7m loan was due to be repaid on February 28, but it was extended with a 24 per cent interest rate with a guarantee from Li’s wife.
A sum of €3m was due to be paid yesterday, otherwise the interest rate could rise to 42 per cent.