Revealed – Why Oaktree Is Desperate To Extend Loan To Inter Milan Owners Suning | OneFootball

Oaktree Capital are reportedly eager to grant Inter Milan owners Suning a loan extension, even though the Chinese group doesn’t fancy this solution.

It has been a chaotic week for the club’s hierarchy as Suning must settle their debt to the American investment group before Monday’s deadline.

Inter president Steven Zhang has found himself an ally in Pimco. This company is willing to repay Oaktree and replace it as Suning’s creditors, thus buying the Chinese additional time at the club’s helm.

Suning have thus chosen to refinance the loan with Pimco’s help, especially that the latter has offered better terms.

Nevertheless, Oaktree are trying to block this solution.

La Gazzetta dello Sport (via FcInter1908) explains the reason behind the American company’s stance.

Oaktree Blocking Suning Loan Refinancing Plan As They Seek A Cut From Future Inter Milan Sale

As the source explains, Oaktree would be owed 20% of the difference between the club’s estimated value at the time when the loan was granted (circa 800 million euros) and the actual fee that Suning would receive if they were to sell this club.

However, this clause is only valid if the sale ensues in the next 18 to 24 months.

Therefore, Oaktree would like to extend the loan and make sure the new deadline is relatively short. This would prompt Zhang to find a buyer sooner rather than later and allow the American fund to collect this extra sum.

On the other hand, Pimco could grant Suning a lengthier deadline which could reach three years. So while Oaktree would still warrant a cut from a future sale if Pimco replace them as creditors, the clause would become void after two years.

Hence, the source believes all scenarios remain possible at the moment, and a legal battle could be brewing between Suning and Oaktree.

Nevertheless, Zhang will be hoping to finalize the operation with Pimco as soon as possible and then secure a peaceful solution with Oaktree.