In less than two months, Inter will face one of the most important dates in recent history, needing to find a solution to the fast-approaching deadline of the loan with Oaktree.
By the end of May 20th, 2024, Nerazzurri president Steven Zhang needs to repay the US management fund a fee of around €375m, the total of the initial €275m loan plus around €100m in interest. Failing this, a new agreement needs to be in place, or else Oaktree can take control of the club.
La Repubblica details how Oaktree’s management recently declined a new deal proposed by Zhang, not interested in extending the deadline by a year and increasing the interest fees. The reason is because the insolvency office in London have deemed the loan ‘strong risk’, or ‘unlikely to pay’.
If Zhang and Oaktree can’t find an agreement, then there’s just two options left on the table for the Inter owners.
The first would be to set up a new €400m loan with a different fund in order to pay off the debt by May 20th. Advisors Goldman Sachs and Raine Group have been in talks with two possible candidates, but things need to progress fast considering the timescale of these types of deals.
The second path sees Oaktree take over the club in Zhang and Suning’s place, likely by converting the majority of debt into shares or by the enforcement of the pledge. The fund would want to move on by the summer, so would quickly look for new buyers.
One figure who seems secure in his position regardless is CEO Beppe Marotta, whose contract with Inter runs until June 2027. He is widely appreciated for his work and expertise and isn’t expected to be at risk.
Oaktree take over and sale the most likely scenario! Hopefully, the Saudi’s or someone like that, with deep pockets, buy Inter!