While there are mixed reports over BC Partners making an offer to buy up Inter, the Financial Times claims owners Suning are ‘rushing to raise at least $200m in emergency cash.’
The club’s finances are in dire straits after the effects of the pandemic and a Chinese Government clampdown on investing in foreign football clubs.
While there are mixed reports over BC Partners making an offer to buy up Inter, the Financial Times claims owners Suning are ‘rushing to raise at least $200m in emergency cash.’
The club’s finances are in dire straits after the effects of the pandemic and a Chinese Government clampdown on investing in foreign football clubs.
Negotiations with BC Partners to sell most if not all the shares had seemingly ground to a halt, although Il Sole 24 Ore newspaper in Italy suggests today that a proposal was made for €750m, including €400m to cover debts.
An increase of capital worth €200m could also be required by the end of 2021 to keep the club going.
The demand is closer to €900m, so they are a long way off reaching an agreement.
Now the Financial Times reports that Suning are “rushing to raise at least $200m in emergency cash” in response to “a financial crisis at the club.
“The club continues to speak with BC Partners as well as other potential investors including distressed debt funds such as Ares Management and SoftBank-owned Fortress Investment Group.
“Others who have been monitoring the situation include Swedish private equity group EQT and US-based Arctos.”
The FT report also claims “some of those with knowledge of the talks added that Suning was believed to be far likelier to sell an equity stake, even if that means taking a loss on its investment, rather than allowing the club to go bankrupt altogether.”
Suning face issues of their own in China, having paid off $1.5bn in debt last year, but with another $1.2bn in bonds set to mature this year.