May 21, (THEWILL) – The recent Serie A title celebrations at Inter Milan could be short-lived as the club stares down a looming deadline to repay a substantial debt. Tuesday marks the due date for the club’s Chinese owners, Suning, to settle a €395 million loan taken out three years ago from US investment fund Oaktree.
Failure to make this payment could pave the way for Oaktree to seize control of Inter. The Italian champions racked up significant financial losses during the COVID-19 pandemic, borrowing €275 million at over 12% interest in 2020 just to cover operational costs like staff and player salaries. The club itself was offered as collateral against this debt. Despite posting an €85 million loss this season, president Steven Zhang maintains Oaktree is unfairly jeopardising Inter’s stability through unspecified legal actions.
Zhang alleges Oaktree has obstructed efforts to secure refinancing, including reported negotiations for a €430 million loan from another US fund, Pimco. However, a source indicates no credible buyer or refinancing partner has emerged for Suning. This casts doubt on Inter’s ability to meet Tuesday’s repayment deadline.
If Suning defaults, a relatively straightforward takeover process could unfold, mirroring how US fund, Elliott Management, acquired local rivals AC Milan in 2018 after former Chinese owner, Li Yonghong, failed to service his own debts. Though an announcement is not imminent, missing this week’s deadline leaves the door open for Oaktree’s acquisition of the newly minted champions.
Despite the off-field turmoil, Inter’s on-pitch progress continues, having claimed seven trophies since Suning’s 2016 acquisition, including two domestic titles in four years. As jubilant scenes unfolded at San Siro on Sunday, the club’s leadership projected an air of stability that may soon dissipate.
Jude Obafemi is a versatile senior Correspondent at THEWILL Newspapers, excelling in sourcing, researching, and delivering sports news stories for both print and digital publications.
