Suning face one key decision as far as how they will finance an extension of their loan from Oaktree Capital and stay at Inter Milan.
Today’s print edition of Turin-based newspaper Tuttosport, via FCInterNews, note that the Inter owners could either finance the payment with money from their parent company, or with unused cash from the loan.
It now looks very clear what Suning intend to do to stay in control of Inter.
The Nerazzurri owners have been negotiating an extension of the deadline of their loan from Oaktree.
Such an extension would ensure that Suning don’t default on the loan. That would prevent control of the Nerazzurri from passing into the hands of Oaktree.
And Tuttosport confirm that Suning’s plan is to make a €100 million payment that would cover the accrued interest on the €275 million loan.
Then they hope to extend the deadline by two or three years. This would see the interest on the loan rise to 16%.
Suning Have Two Options To Finance Extension Of Oaktree Loan To Keep Inter
If Suning are going to make a €100 million payment to cover that interest, they would of course have to find the money somewhere to actually invest.
And there would be two possibilities in this respect.
One would be for the Chinese company to invest their own money, from their parent company.
And the other prospect would be to invest some of the cash from the initial loan.
Suning have not yet injected all of the €275 million that they took on in 2021 into Inter. They still have it sitting there and ready to use.
Therefore, the Inter owners would have the cash to cover the payment of the accrued interest.
Following that, Suning will have to strategize on how they would meet the new deadline. Growing revenues on and off the pitch will be crucial in that respect.
