Financial Maneuvers by Inter Owner Down to the Wire

While Steven Zhang is in advanced talks with Pimco to replace the loan from Oaktree, the process won’t be resolved until very late. The conversations are still ongoing, and some obstacles have emerged. The deadline is May 20^th.

According to La Gazzetta dello Sport, the Chinese entrepreneur is on the verge of obtaining €430M from the Californian fund. He owes €375M to the other one. There’s time until next Tuesday for the payments since the holding company Great Horizon is located in Luxembourg, which has a national holiday on Monday.

On the other hand, Oaktree has started obstructing the operation. Perhaps they were hoping for a different result. They are withholding information and posing technical, legal, and bureaucratic issues to stall things. They aim at refinancing at a higher rate, pushing the deadline by 12 months.

Instead, Zhang got more favorable conditions from Pimco. He’d have three years to repay the sum, adding a fairly standard 12 percent.

A potential sale of the team down the line can’t be excluded. A Saudi fund, not PIF, which tried in the past, laid eyes on Inter. Oaktree would have the option of taking over if the debt wasn’t repaid in time. The whole ordeal has delayed any big money move by the management, such as Lautaro Martinez, Nicolò Barella, and Simone Inzaghi’s extensions. Given the hurdles, a positive outcome of the deal between Zhang and Pimco isn’t yet certain, Bloomberg informs.