Oaktree acquires Inter Milan club after debt repayment deadline
Date
5/23/2024 5:50:44 AM
(MENAFN) On Wednesday, the American investment fund Oaktree announced its acquisition of Inter Milan, the renowned Italian soccer champion, after the Chinese Suning Group failed to meet the deadline for repaying debts totaling 395 million euros (USD428 million). The statement issued by Oaktree revealed that it assumed ownership of Inter Milan after the expiration of the repayment deadline for the three-year debt owed to Inter's holding companies, which amounted to approximately 395 million euros.
This development marks a significant transition in ownership, as the Suning Group relinquished control of Inter Milan to Oaktree. The transfer of ownership occurred just three days after Inter officially secured its twentieth Italian League title, underscoring the club's remarkable success on the field amid financial uncertainties off the pitch.
Suning Group's financial entanglements stem from borrowing 275 million euros at a steep interest rate of 12 percent three years ago. The funds were utilized to cover expenses such as salaries for technical staff and players during the challenging period of the Covid-19 pandemic, which severely impacted the financial stability of clubs across Europe. As security for the debt, Suning Group pledged its controlling stake in Inter Milan, leading to Oaktree's assumption of ownership following the default on repayment.
In its statement, Oaktree expressed its commitment to ensuring the long-term success of Inter Milan, with a primary focus on achieving operational and financial stability for the club and its stakeholders. This acquisition comes at a crucial juncture for Inter Milan, which has experienced a resurgence in both domestic and European competitions since Suning's acquisition in 2016. Under Suning's ownership, Inter clinched seven titles, including two Italian League championships and notable successes in continental competitions.
As Inter Milan transitions under new ownership, the club's stakeholders will undoubtedly look to Oaktree to navigate financial challenges while sustaining the club's competitive edge on the field. Oaktree's commitment to the club's stability and success signals optimism for the future of Inter Milan amidst changing ownership dynamics in the world of football.
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