Negotiations between Inter Milan owners Suning and US-based fund PIMCO are at risk of collapsing at the final stage.

Business outlet newspaper Bloomberg reports, via Calcio e Finanza, that the parties are struggling to get a final deal over the line just days before the deadline of the loan from Oaktree Capital to Suning.

In recent weeks, reports have suggested that Inter owners Suning are in advanced talks with US fund PIMCO.

These funds would be for a massive loan to the Inter owners. The purpose of this would be for the Nerazzurri owners to repay a different loan from another US-based fund, Oaktree.

Suning brought that loan in in the spring of 2021. This was amid a pandemic-related financial crisis which saw the Inter owners struggle to cover operating costs at the club.

As part of the agreement with Oaktree, Suning put up their shares in the Nerazzurri as collateral.

Therefore, if the Inter owners were to default on the loan, their controlling shares in the club would pass into the hands of Oaktree.

Talks Between Inter Owners Suning & PIMCO At Risk Of Collapsing

The new loan that Suning have been working on securing with PIMCO would therefore be of paramount importance for the Inter owners remaining at the helm.

The due date for the loan is on the twentieth of this month – just five days away now.

Suning must have the liquidity on hand to pay back their debt to Oaktree in full (€275 million plus interest, rising to €380 million in total).

The negotiations with PIMCO have appeared to be a solution for the Inter owners to refinance their debt to Oaktree.

Now, however, things don’t look so certain.

According to a source who contacted Bloomberg but wished to remain anonymous, the talks between Inter and PIMCO are stalling.

The parties have been working to agree a 435 million loan with a 15% payment-in-king coupon.

However, as of yet the talks have not resulted in an agreement. And according to Bloomberg, a source familiar with the negotiations has claimed that there are roadblocks.

However, Bloomberg adds, the source did also mention that the situation is fluid.

Therefore, it is still very much possible that Suning and PIMCO could resolve the difficulties and the Inter owners could secure the loan after all.

Bloomberg also report that when they attempted to reach Suning, they did not receive any comment from the Inter owners.

Suning had also previously been in talks with Oaktree about the possibility of extending the deadline past this month.