Suning To Keep Control Of Inter Milan For Foreseeable Future – Ready To Extend Oaktree Loan Deadline By Two Years

Suning and Oaktree Capital should agree an extension to the deadline of the loan to the Inter Milan owners by two years.

Today’s print edition of Milan-based newspaper Gazzetta dello Sport, via FCInterNews, report that negotiations are headed towards an agreement on new terms with higher, but still sustainable, interest.

For months, speculation has surrounded the future of Suning at Inter.

The reason for this is the looming deadline for repayment of a loan to US-based fund Oaktree.

That loan, made in 2021 to cover operating costs at Inter amid pandemic-related financial chaos, comes due in May.

And Suning effectively put the Nerazzurri up as collateral. Therefore, defaulting on the loan, including all interest payments, would see control of the club pass into Oaktree’s hands.

But the Gazzetta confirm that Suning and Oaktree are very close to moving the deadline back,

Suning & Oaktree Close To Agreeing Two-Year Extension To Inter Milan Loan Deadline

There has been speculation about exactly what Suning would do in this situation.

A sale of the club has been one highly-speculated-on possibility.

And refinancing the debt to Oaktree through a separate fund is another route.

But a report last week revealed that Inter and Oaktree are in fact in advanced negotiations.

The US-based fund are convinced by Suning’s ownership at Inter. They believe in the future viability of the Nerazzurri project based on both results on the pitch and corporate developments off of it.

Therefore, Oaktree have shown a willingness to work with Suning in negotiations on an extension.

The Gazzetta report that the extension to the deadline will be two years.

This will see Suning and Oaktree agree new terms. These will see the interest rates on the loan increase, but within sustainable levels.

The Gazzetta note that Suning are eyeing up the Club World Cup next year.

Participation in that competition will guarantee Inter €50 million in additional revenues.

And the Nerazzurri are also aiming to increase their earnings from their main shirt sponsorship to €30 million per season. Negotiations are ongoing with the likes of Qatar Airways, Riyadh Air, and Betsson to this end.

Suning remain convinced that with sustainable spending, commercial developments, and the new stadium project, they can guide Inter into the future financially speaking.

Meanwhile, the Gazzetta report, Nerazzurri President Steven Zhang could be in Italy for April.

So far this season, the President has yet to attend an Inter match. But he could finally leave China for Italy after the international break, perhaps in time for a prospective Champions League tie.