It’s reported Milan have written a letter to Yonghong Li, asking him to deposit €10m by tomorrow.
The Rossoneri need around €35m of capital before June 30, with rumours they may need another loan from Elliott Management.
Now Il Sole 24 Ore is reporting that the club has sent a letter to Rossoneri Sport Investment, the holding company owned by Li, asking for a capital increase of €10m by March 23.
It’s reported Milan have written a letter to Yonghong Li, asking him to deposit €10m by tomorrow.
The Rossoneri need around €35m of capital before June 30, with rumours they may need another loan from Elliott Management.
Now Il Sole 24 Ore is reporting that the club has sent a letter to Rossoneri Sport Investment, the holding company owned by Li, asking for a capital increase of €10m by March 23.
That money, which is due tomorrow, forms part of the capital injections which the club needs to ensure liquidity between now and the end of the season.
So far Li has always honoured his financial commitments to the Diavolo, and as things stand there is no reason to suspect the money won't arrive.
However, Il Sole 24 Ore reports that the liquidity at his disposal in China and Hong Kong is running low.
His former company Jie Ande has been declared bankrupt, and as a result, it’s claimed, Chinese lenders are cautious about granting loans.
That is backed up by reports this month that a loan of €7-8m necessary to inject capital into Milan had to be guaranteed by the owner’s wife.
A second option is to accept the new loans from Elliott, adding to the €180m owed by Rossoneri Sport Investment – the club owes €123m.
However, that would leave Li looking weak and effectively hand over the running of the club to the U.S hedge fund.
The third option is even more severe for Li, which would involve defaulting and letting Elliott take control of Milan.
The fund can take over the running of the club if they aren’t repaid in full by October, but if the owner were to default now that could trigger the same outcome.
It has also been reported that an investigation has been opened into the sale of the club, though as things stand there are no allegations of criminal activity and no suspects.