Milan have redeemed two notes that were issued last year and the club now has no financial debts that are pending.
The Rossoneri fans have been able to focus on football instead of on finances ever since Yonghong Li defaulted on his loan to Elliott Management and the American hedge fund took over the club.
Today the club has announced that it has repaid two bonds that were issued last year on the Vienna Stock Exchange, which, according to Milannews.it, are in total worth €123m (€73m + €50m).
The statement from the club reads:
“Milan, 25 September 2018. On the date hereof, A.C. Milan S.p.A. (the “Company”), by way of a notice sent to the sole holder of the notes named “Prestito Obbligazionario Garantito Associazione Calcio Milan S.p.A. 2017–2018 – Serie 1” (ISIN Code IT005254435) (the “Series 1 Notes”) and “Prestito Obbligazionario Garantito Associazione Calcio Milan S.p.A. 2017–2019 – Serie 2” (ISIN Code IT0005254443) (the “Notes Series 2” and, together with the Series 2 Notes, the “Notes”) issued by the Company and listed on the Third Market of the Vienna Stock Exchange, and to the calculation and paying agent, has exercised the option to voluntarily early redeem in whole the Notes according to Section 9.2 of the respective terms and conditions of the Notes. The date of redemption will be 28 September 2018.”
As reported by MN, when Yonghong Li took the €303m loan from Elliott, it was split into two tranches: one worth €180m to be paid by Rossoneri Sport Lux, the club’s holding company under Li, and the other worth €123m to be paid by the club. When Elliott took over, the first tranche was ‘paid’ automatically, while the other was still pending until today. But Elliott’s €123m capital increase has made it possible to pay off the debt. Therefore, Milan have no pending financial debts and aren’t gambling when it comes to money.
This is the third capital increase made by Elliott since taking over: the first was of €21m at the end of August and then another €30m earlier this month. All done without drama and reports on the papers.
What a mess Milan was when the Chinese took over no structure no clue just here get some players and do whatever Elliot is making great changes maldini leo gazidis players of high quality coming in higuain semu the mistake to keep gattuso on and not get ancelotti or conte hopefully they realise it soon he ain’t the one just like montella was a mess
Oh that is a great news, right?
(I am really bad at analysing economics, it just doesn’t interest me as football and physics do)
Hopefully it will also help with FFP thingys (again, I am really bad at those aspects).
And we can FINALLY buy a proper playmaker.
Pretty much expected; Elliot has the funds and more so.
The question is what happens when their plan doesn’t work and all the Maldinis and Leonardos can’t bring us CL. Do they inject more funds or do you they start getting their investment back by stripping the club like a stolen car.
Well, I think Elliott wants to upgrade the value of the club. A club without (as from now, but until the end of the season) is much more worth than a club with debts. So they might want to upgrade the club and sell it asap.
This payment coukd also mean, I think, Elliott wants to healthen the club and probably invest in some new players.
The talks with SMS are going on again according some rumors
Now now Baresis Dream there’s no need to start blaming Maldini or Leonardo.
We all know who’s responsible for all the dropped points so far
I’ll give you a clue, he’s the one who shouts and roars with flailing arm’s on the sideline like hes surrounded by killer bees
He’s the one who decides to take off Jackamo while he’s having the best game of his life??? Ring any bells???
Yes it’s Gattuso
@Naz: not hating on Maldini nor Leonardo, I’m bashing our squad. I mean, as usual, we have a decent first 11 give or take, but no one to sub as a match-changer; maybe bar Cutrone. Depth, depth, depth.
Well seen as we’re now totally dept free it should give us a sizeable amount of funds to enter the transfer market next summer while also having champions league football to offer (provided they replace Gattuso) the future looks bright Baresis Dream and we shouldn’t forget that Leonardo was late to the table this year also having one hand tied behind his back with FFP rules but he still did an admirable job so just imagine him with no restrictions??
yeah does this mean we’re entirely free from debt now?
Yes
Best news ever
Can someone explain how the capital increases were made (i.e. where they came from)?
Wrong site lol.
this is absolutely a nice news that needs to be heard, u people shud keep up the good work concerning milan, pls move the milanisti club to the next level, and secondly gennaro gattuso shud stop spoiling our points against these smaller teams, Kudos to Maldini, Leonardo, Elliott funds and plenty rest
report going Roma want the service of conte I think we should go for him before its to late conte said he is not going to Roma I think he is expecting Milan to make the appropriate move I love gattuso but we can’t make the gamble anymore.
Mehn if Milan losses in Conte it would be a huge loss to Milan. This is a proven coach who had win at least one title as a club coach..
He is one of the best coaches out there..
Chai…. Leonardo and Maldini should better smell the roses
We won’t get Conte – if they sack Gattuso they’ll go for Ambrosini. Or maybe Zapata as player/manager.
I think bonera just got his coaching license at coverciano.
Gattuso is not right the coach for Milan. If he is not sacked, we should forget about champions league qualification this season. He’s just not up to the task.
Elliot very nice. Now a humble word of advice – inject more money and get 1 preferably 2 more top players. Samu seems like a waste of money, and not also not so sure about Bakayoko (especially given we had Loca). Instruct Leo-Maldini to purchase only currect (emphasis on current, no prospects) top preferably world class players in their prime (typically, ages 22-28 – so no Fabregas for instance). And the most important position – left wing. Getting a top player at LW gives Hakan/Jack the central midfield role, and hopefully increases our goal tally. We need someone like Depay… Read more »
it’s nice to see the club made progress on financial basis.
whats left is the club to make progress at winning result/point. as leo said, “milan are in a hurry”. gattuso better make positive change into the team. the sooner the better.
Yeah gattuso has no idea Grit and trying to pump players up aren’t tactics and his substitutions are shocking. Take Bonaventura off when he scores, has a goal disallowed , &hits the post , to rest him for the next game . If Elliot were serious they should have got a real coach at the start of the season and given gattuso another role within the club … Sorry no confidence at all in gattuso and we need a real manager . The only game we won was when he didn’t bring bakayoko on, sorry bakayoko rubbish and shouldn’t have… Read more »
Our games are always fake at the end,is it that the team cannot play 90min ball. Look Rino is in error,elliot should act fast before they regret their efforts.
I’m not sure we are debt free. The article stresses the word ‘pending’ not total…. which implies there is other debt involved.
Great news, now I hope UEFA grants us the ”Voluntary Agreement” that will be a huge icing on a huge cake…!
“ever since Yonghong Li defaulted on his loan to Elliott ManagemenT” ooh ck..come out come out wherever u are. I want u, a defender of all things chinese, to talk to me about the li and their “back ups” who convinced elliott to loan them money without collateral. Oh while we’re at it, we can talk about modern st as well. C’mon mate, for old times sake *wink