For around five months now, Yonghong Li has managed to keep €364m frozen from Elliott Management following their sale of Milan to the RedBird group.
Truth and Business details how the story starts in 2017, back when Silvio Berlusconi sold the Rossoneri to the Chinese businessman. The deal was only concluded because of a €303m loan, with staggering rates ranging from 7.7 to 11.5%, provided by Elliott. Tied to the loan were various constraints and repayment obligations, things Li failed to comply with.
Elliott therefore took management of Milan in 2018, becoming the club’s new owners. Four years later, at the end of April 2022, Li decided to go to court in Luxembourg to challenge that initial loan deal and the enforcement of the takeover due to his failure to raise €32.3m capital. A few weeks later, €364m were frozen.
In the Milan deal, between deposits, money paid upfront and capital increase payments, Li invested just under €400m, and now he’s trying to get some of that money back.
Law firm Loyens & Loeff, representing Elliott, have explained in a hearing why they’re asking for the annulment of the order blocking their client’s funds, passing the ball to Rossoneri Honk Kong, Li’s company.
Lawyers from the Cleary Gottlieb firm were unable to clarify all the terms of the transaction, partly because of the club’s complex controlling structure, so the dispute has been postponed to December 19, when Li’s lawyers will give their response and Elliott will be called to answer various questions.
Tell us whether this has anything to do with the current situation in Milan, don’t try to parrot some TV stations who are broadcasting business and financial news!