It’s reported Milan have agreed a deal to refinance their loan from Elliott Management, though with a higher interest rate.
The Rossoneri were taken over by a Chinese consortium in April, financed by a loan from the U.S hedge fund.
Under the terms of the deal, if the €303m - circa €350m with interest - isn’t repaid within a year Elliott can take over the running of the club and sell their assets to get their money back.
As a result, owner Yonghong Li and his Rossoneri Sport Investment group have been looking to refinance the deal, and Corriere della Sera reports a deal is close with Highbridge, owned by JPMorgan Chase.
An eight week exclusivity deal has been agreed for due diligence, on a plan which would see the debt refinanced and paid over five years.
The new financing deal would be worth around €400m, with €250m falling on Rossoneri Sport Investment and €150m on the club.
In addition, there is the possibility of accessing a further €100m in the future if the club meets the targets set out in the business plan they’ve submitted to Highbridge.
The business plan is conservative in terms of sporting results, banking on the Europa League rather than the Champions League, but there are more ambitious targets for growth in China.
The deal has been in the works for some time, so there is confidence that an agreement can be signed before the eight week deadline.
If the deal is done, it would remove the spectre of Elliott from over the new owners and allow them more time to pursue their sporting and financial goals.
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