"At the heart of the case is a debt of $289.17m (approximately €250m) relating to the personal guarantee Li signed in 2017 in favour of the funds for the issuance of $150m bonds, which financed the purchase of Milan from Fininvest. The company issuing the bonds was Rossoneri Advance Co. Limited, one of the offshore structures used by Li to control the club, which has officially been requested for liquidation in recent days. Eventually, Elliott Management would take over Milan, with loans not repaid."
"Li had attempted to challenge the bankruptcy order, arguing that: 1) He had never been served with a 'valid demand for payment', and 2) that the amount of the debt had been incorrectly calculated. The court deemed both arguments 'baseless', adding that the guarantee signed by Li provided for liability as a principal debtor, and therefore not subject to any written request."
Yonghong Li was declared bankrupt last July for unpaid debts of about $280m, with a liquidation hearing scheduled for next January. The bankruptcy followed a proceeding by five Cayman Islands investment funds indirectly controlled by China CITIC Financial AMC International Holding Limited. The central liability stems from a $289.17m debt tied to a 2017 personal guarantee for $150m bonds used to buy AC Milan. Rossoneri Advance Co. Limited, the bond issuer and offshore holding, faces liquidation. The Hong Kong Court dismissed Li’s challenges, finding the guarantee created principal-debtor liability and that the outstanding debt remains well above $160m.
Read at SempreMilan
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