If Yonghong Li doesn’t pay back his debt to Elliott Management, they will put Milan up for sale “to the highest bidder,” confirmed a representative.
The Serie A club takeover from Silvio Berlusconi was only completed thanks to a €303m loan from American hedge fund Elliott Management in April 2017, which has to be repaid in October.
Today TeleLombardia had an interview with Paolo Scaroni, a member of the Milan Board of Directors who represents Elliott’s interests and is the Vice-President of Rothschild.
“I don’t know if Milan will find the money to refinance the debt. These are matters that (CEO Marco) Fassone and (patron) Li Yonghong are looking into.
“In theory it is possible, but I couldn’t tell you at what stage we are.”
If the Chinese patron is unable to pay back the debt, will Elliott try to run Milan themselves?
“I don’t think that (Elliott hedge fund chief) Gordon Singer wants to be the President of a football club. The loan had in it a series of guarantees, so if it was not repaid, Elliott would become owners of Milan to get back the money.
“The scenario that could happen is that the creditor Elliott sells Milan to get back the money. The remaining sum exceeding the credit owed would be given to Mr Li.
“The sale would be to the highest possible bidder. The majority shareholder is so far continuing to keep up with the promises made and increasing the capital as agreed in the 2017-18 budget, the plan for Milan from 2017 to 2022.
“Within this plan, which has some hypothesised revenue as all plans do, there is the provision for an increase in Capital.
“Milan are working actively to attract sponsors of various types of China. They have hired many active people, but it’s early to draw conclusions.
“As part of the strategy of the Milan majority shareholder is the need to attract sponsors from China.”
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