On January 2, the Italian newspaper La Repubblica focused on Inter. Entering 2024 also means that Inter is getting closer and closer to the "date of loan repayment". As the chairman of the club, what are the plans of Zhang Kangyang? If he does not repay the loan, what will be the consequences?
Zhang Kangyang only has two months left to raise funds
In May 2021, Inter signed a loan agreement with Oaktree Capital for €275 million. According to the agreement, Inter needs to repay it after three years with interest, with an interest of 12%, with a total of about 350 million euros (equivalent to 2.8 billion yuan).
There are just over four months left until the "date of repayment". However, the time really left for Inter and Zhang Kangyang to raise funds is shorter. According to La Repubblica, Zhang needed to find a new lender within two months to repay Oaktree Capital's €350 million loan.
Since June last year, Zhang Kangyang has been in Nanjing, without an office at Inter. However, Zhang Kangyang regularly liaises with Inter managers and Goldman Sachs Group. Zhang Kangyang needs to speed up the process - find a new financier within 2 months, and then (at least) 6 weeks to operate and trade, which is not enough time.
"Republic Daily" revealed that Zhang Kangyang is looking for new financing this time, and the interest rate is between 16% and 18%, which may be slightly lower. In any case, it is imperative for Inter and Zhang Kangyang to quickly finalize financing and issue new bonds to replace old ones.
Don't sell Inter! Zhang Kangyang has a firm attitude
Inter's operations are improving, both athletically and economically. Last season's Champions League, Inter Milan finished runners-up, and this season's Serie A, Inter Milan topped the table. Impacting the 20th Serie A championship trophy in team history and embroidering the second star on the jersey is Zhang Kangyang's goal.
In the past three years, although a consortium from the Middle East and the United States has been interested in acquiring Inter, there have been no real buyers in good faith. For now, Zhang Kangyang will make every effort to repay the 350 million euro loan due in May.
Of course, the worst-case scenario could happen – what if you don't pay off your loan in May?
La Repubblica cites AC Milan as an example. In April 2017, Li Yonghong bought AC Milan club, and in order to complete the acquisition, Li Yonghong asked the Elliott Fund to borrow 303 million euros. One year later, Li Yonghong could not repay the loan, and Milan was owned by Elliott.
If Inter are unable to raise funds in May, their fate will be the same as that of Li Yonghong, who will cede to Oaktree Capital in the United States. However, La Repubblica also believes that there is no indication that things will go in this direction.