UEFA has announced that it has rejected Milan's application for a voluntary agreement, casting more doubts about the club's ownership.
Explaining the reasoning behind its decision, UEFA confirmed it had doubts over Milan's ability to repay a €300m loan to American hedge fund Elliott Management by next October.
“The Investigatory Chamber of the independent UEFA Club Financial Control Body has reviewed the application for a voluntary agreement made by AC Milan as part of the Financial Fair Play (FFP) regulations,” read a statement on the governing body’s official website.
“After careful examination of all the documentation and explanations provided, the Chamber decided not to conclude a voluntary agreement with AC Milan.
“In particular, the Chamber considered that, as of today, there are still uncertainties in relation to the refinancing of the loans to be paid back in October 2018 and the financial guarantees provided by the main shareholder.
“AC Milan will continue to be subject to the ongoing monitoring process and the situation will be assessed again in the first months of 2018.”
A voluntary agreement is essentially a plan that outlines how a club is able to satisfy Financial Fair Play (FFP) if they have recently changed owners.
The Rossoneri must now negotiate a settlement agreement, which poses tougher spending restrictions and weakens their hand in restructuring debts.