Suning could still bring in a cash windfall even in the event that they do not manage to refinance their debt to Oaktree Capital.
Today’s print edition of Turin-based newspaper Tuttosport, via FCInterNews, detail how the Nerazzurri owners could still monetize their exit somewhat if they default on their debt.
It is now widely known that, if Suning were to default on the well over €300 million that they owe to US-based fund Oaktree on their €275 million loan, control of Inter will pass into the hands of the fund.
This has raised the spectre of the transition in ownership of AC Milan from Li Yonghong to Elliott Management in 2018.
In that instance, Elliott simply took control of the Rossoneri when Yonghong defaulted on his debt.
The Chinese businessman did not receive a fee.
Recent reports have suggested that that there is actually a clause in Suning and Oaktree’s agreement will entitle the current Inter owners to financial compensation should they default.
That would be decidedly different from the situation with Yonghong.
It may not be that simple, though, according to Tuttosport.
What Suning Could Earn If Oaktree Take Over Inter
The big question is how the amount that Oaktree would compensate Suning would be compensated.
Tuttosport report that an impartial expert would calculate the value of the club.
The fact that the Nerazzurri carry significant debt in the form of a €400 million bond would be factored in.
Then, the debt that Suning still owe to Oaktree would be subtracted.
So it’s not exactly clear what the amount would be.
Figures between €150 million and €300 million have been reported. But there is no guarantee exactly what the amount will be.
And in the meantime, Suning still hold around €100 million of the €275 million loan that they have not invested into the club.
Good performances by the team on the pitch have led to higher-than-expected revenues. Moreover, the club have brought in big profits from the transfer market.
