More details are emerging about the financing deal that Oaktree gave to Suning in order to keep Inter afloat, with a massive 12 per cent interest rate already charging €21m for 2021.
Calcio e Finanza claim to have viewed the paperwork of the Luxembourg vehicle for the financing and saw that Oaktree guaranteed €292.12m in financing with a 12 per cent interest rate.
That was handed to Grand Tower Sarl, one of the holding companies that Suning use to control Inter.
Much like when Elliott Management repossessed Milan’s holding company when Yonghong Li failed to keep up repayments on a loan with a huge interest rate, if Suning did not maintain the payment schedule, the club would effectively be taken over as an asset via this holding company Grand Tower.
The financing deal was sealed in May 2021 and Grand Tower isn’t the only asset that could be repossessed, as Lion Rock is also included, so together would represent 99.6 per cent of Inter shares.
The interest alone for the year 2021 was therefore €21m and Suning have already paid that sum.
Interessi al 12% nel finanziamento di Oaktree a Suning per l’Inter https://t.co/pMQFBzHb33 pic.twitter.com/XKTtTTOGxy
— Calcio e Finanza (@CalcioFinanza) April 26, 2022
That’s business!
Oh Man…. That’s a LOT! Ooooooh…. I smell a default in the works…
Nah, Zhang Jr will sell off the team bit by bit before he lets go of his Italian toy.
Can see the training ground, the transport bus and all the infrastructure sold off before he decides to leave. Or has everyone forgotten how they folded their CSL team?
Completely dismantled overnight, training grounds and all.
What a crazy world. Today’s world economy is built from the foundation of riba (interest or usury). Good luck in hell!