Oaktree Capital have declined the offer from Suning to extend the deadline of the loan keeping the current owners at Inter Milan.
This according to today’s print edition of Rome-based newspaper Corriere dello Sport, via FCInterNews. The newspaper report that the US-based fund are not convinced by the proposal that Suning have put forward.
Inter owners Suning have been working to try and negotiate an extension of the deadline for the loan that they took on from Oaktree in May of 2021.
At the moment, that deadline is May 20. So in other words, just two months away.
That loan was for €275 million, and the interest rate is 12%.
Suning’s offer has been to make a payment of €100 million to Oaktree before the deadline in May. And then extend the deadline until 2026 or 2027, with increased interest.
Suning had offered a new deal with interest of 16%, but according to the Corriere, Oaktree had declined this.
And the newspaper report that Suning had even gone as high as 20% interest.
But once again, the Corriere report, Oaktree turned this down.
Oaktree Decline Suning Offer To Extend Inter Milan Loan Deadline
According to the Corriere, the position within Oaktree is that the value of Inter could drop over the next few years.
This would make the fund’s position a complicated one if they decide to extend the deadline of their loan to Suning.
It would become difficult for Oaktree and Suning to find an investor or buyer for the Nerazzurri in the event that the value of the club decreases.
Therefore, the Corriere report, Oaktree have been reluctant to agree an extension of the deadline with Suning. Even at very high interest.
The newspaper anticipate that it could still be possible for Suning and Oaktree to come to an agreement quickly within the next few weeks.
But so far, the US-based fund has rejected Suning’s offers.
Oaktree have not prioritized taking control of Inter – which would happen if Suning were to default.
But the fund could quickly plan to take over the club and try to sell it.
