AC Milan-Highbridge, negotiations are heating up: the latest

28 nov 2017

AC Milan have to take care of two different manners that will be crucial for the future of the club. The first one is the meeting with UEFA as the rossoneri club have to be hoping that they will give them a positive vibe concerning the voluntary agreement. The second one is the 354 million euros that the club and it's owner still owe Elliott management (and that has to be paid back by October 2018). Fassone and Yonghong Li tried to hold talks with credit institutions like Merrill Lynch and Goldman Sachs but have since received a very positive answer from Highbridge (who are controlled by JP Morgan).

THE PLANS OF THE CLUB - As previously mentionned, Milan owe Elliott 354 million euros: 123 million euros from Milan, 180 million euros from Yonghong Li, plus another 50 million euros in interests (11.5% on the 180 million euros and 7.7% on the 123 million euros). Milan's plan is to close a deal as soon as possible with Paul Singer's company (Elliott Management) to spread the debt on 5 years. This would bring the total amount of debt up to 400 million euros (250 million euros for the Rossoneri Sport group and 150 million euros for Milan to be paid over these 5 years). According to sources, Milan remain optimistic on a potential deal. The due diligence with Highbridge has undergone as an agreement is close to being found. Finally, concerning the 60 milliion euros of increased capital, Yonghong Li has already paid 40 million euros as there is another 20 million euros to go...

By Daniele Longo, adapted and translated by Jean-Luca Mascaro (@Calcionews89)