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May 23 – US-based fund Oaktree Capital Management has formally issued a statement that it has taken ownership of the Serie A champions Internazionale after Suning Holdings Group, led by Steven Zhang, defaulted on a €395 million loan taken out three years ago.
Suning acquired a 68.7% stake in Inter in 2016 and, to support the club after the pandemic, in 2021 borrowed €275 million from Oaktree at 12% interest.
In a statement Oaktree said: “In May 2021, with Inter Milan forecasting record financial losses during the 20/21 season, Oaktree provided its holding companies with rescue capital to stabilize the Club’s financial situation and enable it to continue operating, including to pay its players and employees…
“Oaktree is dedicated to achieving the best outcome for the long-term prosperity of Inter Milan, with an initial focus on operational and financial stability for the Club and its stakeholders…
“Oaktree is committed to working closely with Inter Milan’s current management team, partners, the league and governing bodies to ensure the Club is positioned for success on and off the pitch; focusing on robust management, operations and governance with a vision for sustainable growth and success.”
At the weekend Zhang had issued his own statement criticising Oaktree for refusing to participate in discussions to restructure the loan with alternative investors.
Discussions for alternative finance, with US fund Pimco looking ready to do a deal, foundered on Oaktree’s deliberate lack of co-operation, said Zhang. The end result being that Oaktree have taken control of one of Europe’s most storied clubs at a knockdown price.
Alejandro Cano, managing director and co-head of Europe for Oaktree’s Global Opportunities strategy, said: “As new owners, we recognize our responsibility to Inter Milan’s community, history and legacy. We are committed to the long-term success of the Nerazzurri and believe our ambitions for the Club are united…
Source link : https://www.insideworldfootball.com/2024/05/23/oaktree-take-control-inter-milan-suning-default-e395m-debt/
Author : Paul Nicholson
Publish date : 2024-05-23 04:33:39
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