Inter Milan owner Suning could be in for a very heavy financial blow. Because the Chinese giant Evergrande has defaulted and is expected to be declared bankrupt this Thursday (11/11). Suning and Inter owner Zhang Jindong invested heavily in Evergrande.
Bloomberg confirmed China Evergrande Group had failed to pay interest to international investors.
German market screening agency DMSA has started the bankruptcy declaration process, asking all bond investors to join, so the real estate developer is likely to be declared bankrupt today.
Evergrande had already missed several deadlines and extended interest payments before failing again.
This is very bad news for Inter, as owner Suning owns a stake worth 2.6 billion euros in Evergrande Real Estate.
There is already a serious liquidity problem at Suning and this will be a further blow to their portfolio.
According to the Bloomberg Billionaires Index, Suning and Inter owner Zhang Jindong has lost US$2 billion (Rp 28.59 trillion) this year, about half of which came from his fortune.
This will again raise questions about Inter’s future and their plans to sell the club, particularly with interest in PIF, the Saudi investment fund that has bought Newcastle United.
In August, Suning was reported to have a debt of 840 million US dollars. To prevent bankruptcy, the club’s management sold off a number of high-priced star players and chose replacements at a more moderate cost to help the club’s balance sheet.
That’s not enough, Inter owes Oaktree Capital US$322 million not including interest that will mature in the next three years. If calculated including the interest, Suning will have to pay up to 400 million US dollars in the next three years. In addition, Suning must be able to pay 440 million US dollars until December 2022.