Deadline! If Zhang Kangyang fails to repay the 375 million euro loan today, Serie A champions Inter Milan will change hands

Chengdu Business Daily Red Star News

2024-05-21 11:51Posted on the official account of Red Star News of Chengdu Business Daily, Sichuan

On May 21, Beijing time, according to Sky Sports Italy, this season's Serie A champion Inter Milan needs to repay Oak Capital about 375 million euros, and the deadline is May 21 local time.

On May 19, 2024 local time, at the 2023/24 Serie A award ceremony, Inter Milan won the championship According to Visual China

In 2021, Zhang Kangyang and Suning borrowed 275 million euros, with a total of 375 million euros in principal and interest, and May 21 this year is the last day of the repayment period. However, as of today, Zhang Kangyang has not found a solution to prevent Oaktree Capital from enforcing Inter's pledge. Therefore, Oaktree Capital is ready to officially announce the official takeover of Inter on May 22.

It is reported that the current valuation of the "Nerazzurri" with a revival trend has reached 1.2 billion euros, which is converted into more than 9 billion yuan.

According to Sky Sports Italia, there are three possible scenarios:

1. Zhang Kangyang repaid the loan and continued to become the boss of Inter

2. Zhang Kangyang did not repay the loan, and Inter changed hands to Oaktree Capital, which obtained 99% of Inter's equity (1% is the remaining minority shareholders)

3. Zhang Kangyang tried to extend the maturity of the debt

Italian media said that Zhang Kangyang, who had failed in financing before, currently has only one way, that is, to persuade Oaktree Capital to extend the loan in the short term and raise interest rates, but at present, Oaktree Capital may find it difficult to accept this plan.

张康阳 图据IC photo

In addition, the Italian media "Corriere della Sera" wrote an article about the equity relationship between Zhang Kangyang and Oaktree Capital, responding to several questions of public concern, including the question of whether the Inter club is facing a crisis that Inter fans are concerned about, the article said that this only involves the ownership of the Inter club, has nothing to do with the club, and will not affect the financial stability of Inter.

1. What is the relationship between Suning and Oaktree Capital?

In May 2021, Suning's Inter received a three-year loan worth €275 million at an annual interest rate of 12% from US fund Oaktree Capital.

2 Why are we talking about a new owner?

The loan is secured by Inter's equity: if it fails to repay by 21 May, Oaktree Capital has the right to enforce the pledge of Inter's equity and thus become the owner of the club. Zhang Kangyang had to raise 375 million euros to repay the debt, or obtain an extension of the debt maturity from Oaktree Capital to keep his Inter shares.

3 How does Pimco have to do with this?

Mr. Zhang has negotiated a new $430 million loan with another fund called Pimco, which will allow him to repay Oaktree and retain ownership of Inter, but the talks appear to have failed. The problem, Zhang said, was that Oaktree had implemented some of the terms contained in the 2021 agreement regarding the sale of Inter to prevent refinancing. Oaktree said it never completed the repayment, and in any case, the fund only executed the contract previously agreed between the two parties.

4 Will Zhang Kangyang lose everything?

Under its contract with Oaktree, the fund will have to pay Suning the difference between Inter's market capitalization and the $375 million it owes to Oaktree. As a result, Suning can receive "compensation", the amount of which will depend on the estimates of experts, who will also take into account the debts owed by the club, including $415 million due in 2027.

5 Is Inter Milan in crisis?

No, the conflict between Zhang Kangyang and Oaktree Capital only concerns the ownership of Inter Milan and has nothing to do with the club, so there is no problem with Inter's financial stability. As for management and sporting options, Oaktree seems intent on continuing to maintain the club's continuity.

6 What is Oaktree Capital?

Oaktree Capital is an active credit, corporate and real estate purchase and resale fund, founded in 1995 and headquartered in Los Angeles, USA, controlled by Canadian giant Brookfield, with $192 billion in assets under management.

Edited by Cheng Li

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