AC Milan Owner In Danger Of Losing Club To Elliott Management If He Defaults On Loan
Elliott Management could reportedly "hold on" to Serie A side AC Milan if the club and Owner Yonghong Li default on their debt, according to FOOTBALL ITALIA. The U.S. hedge fund loaned the club and Li's company, Rossoneri Sport Investment, a total of around €300M, which must be repaid by October. If that money is not paid back, "then Elliott can take over the club, and would control all of the assets." The club's leadership is "looking to refinance the loan, with due diligence currently being undertaken by Highbridge." If that is successful, it would enter into negotiations to refinance the debt. Financial organizations like Merrill Lynch and Goldman Sachs were reportedly ready to refinance the club, but they are "nervous about refinancing Li." Should a refinancing deal prove "impossible," Li would lose his investment and Elliott would take over the club. While the management group could "look to sell to the highest bidder," sources said that Elliott is "considering keeping the club" (FOOTBALL ITALIA, 12/14).