AC Milan are currently negotiating the debt refinancing with Highbridge Capital and Marco Fassone has promised that the club will repay the debt before the November deadline.
Things do no look well and an agreement between the parties seems far. This is the information that has been filtering since yesterday evening regarding the negotiation for the refinancing of the big debt that AC Milan and Rossoneri Lux still have to pay back.
These days the proposal of Hps/Highbridge Capital (the US fund that was the first to work with the intent of agreeing with Milan on the debt refinancing) is being examined in detail. The idea is to loan the 300 million euros (plus interests) that the club owes to Elliott Management and must repay by next October and re-discuss the refinancing in terms that are within the reach of the Rossoneri, both for the interest rate and timing.
Il Corriere della Sera in its today edition gave details of the proposal launched by Highbridge: new loan of around 400 million euros for the repayment of both the debt of Milan (123 million) and major shareholder’s Yonghong Li (180 million) plus more than additional 100 millions if the targets set on the business plan are achieved. In short, a very favorable offer on paper, given that Highbridge has also proposed a definitive financial recovery of the club through a five-year plan with economic deadlines definitely within reach. Yet the agreement at the moment seems far away, Marco Fassone and company before giving a final response to the New York fund will consider other refinancing proposals.
