Inter Milan owners Suning believe that they can refinance their loan from Oaktree, whilst efforts to find a buyer for the club are also ongoing.

This according to today’s print edition of Italian business newspaper Il Sole 24 Ore, via FCInterNews, who overview the Nerazzurri’s financial situation.

The looming due date of a huge loan from US-based investment fund Oaktree Capital is at the heart of Suning’s current predicament at Inter.

The Nerazzurri owners secured the €275 million loan in the spring of 2021. This was to inject liquidity to cover operating costs into Inter, who were at the time in a state of financial peril in the aftermath of the first year of the COVID-19 pandemic.

The cash from the loan did just that. However, it has left Suning scrambling to pay back the loan, which comes due at the end of next May.

With interest, Suning will owe Oaktree €350 million. They are still far away from being able to pay this back.

Since Suning put Inter up as collateral on the loan, a failure to pay it back would entail control of the club passing into the hands of Oaktree.

Sale Of Inter Milan One Possible Route Forward

Obviously losing control of Inter in this manner would be a scenario for Suning to avoid at all costs.

And, with paying back the loan virtually outside the realm of possibility, the Nerazzurri owners would have a couple options.

One would be to sell Inter. Suning would lose control of the club, but they would still cash in.

Il Sole 24 Ore confirm that Bahrain-based fund InvestCorp have shown interest. As have several US-based investors.

However, the newspaper reports, all prospective buyers to date have been put off by Suning’s very high asking price. The current owners value Inter at no less than €1.2 billion.

None of the interested parties have been willing to make a deal on the basis of this amount.

According to Il Sole 24 Ore, however, the search for potential buyers is still ongoing. US-based investment bank Goldman Sachs and boutique bank Raine Group (the bank that coordinated the consortium that purchased Chelsea last spring) are both working with Suning as advisors.

Goldman Sachs and Raine are still at working scanning the market for interest in purchasing the Nerazzurri.

Suning Still Want To Refinance Oaktree Loan & Keep Control Of Inter Milan

Another route forward for Suning would be to refinance their loan from Oaktree.

If the Inter owners can renegotiate terms on the loan, then it will become less pressing to deal with. Instead of having to pay back an untenable sum in less than twelve months’ time, Suning could kick the can down the road several more years and reassess their strategy.

According to Il Sole 24 Ore, that is still very much what the Nerazzurri owners intend to do.

Renegotiating conditions will not be a straightforward task for Suning given current interest rates.

However, the Inter owners have been handed a boost by the team’s run to the Champions League final last season.

First of all, the team’s exploits on the pitch have raised the profile of the brand. That is no small matter.

Equally importantly, progression to the final stage of Europe’s top club competition has meant a final windfall. Inter did not even take reaching the round of sixteen for granted in their budget for the 2022-23 season.

Therefore, between the prize money for the Champions League knockout stages, and the gate receipt revenues from the extra matches played at San Siro, Inter’s balance sheet looks better than expected for the last season and fiscal year.

As such, Il Sole 24 Ore report, Suning believes there is a possibility for them to renegotiate terms with Oaktree.

They want to refinance the loan and maintain control for some time into the future.