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Official: Ac Milan owner declared bankrupt

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AC Milan’s owner ‘essentially bankrupt’ and has to auction all his assets.

Reports in the Italian press on Monday have claimed that AC Milan owner Yonghong Li is financially insolvent and will have his assets auctioned off on Taobao – the Chinese equivalent of eBay.

Stories of financial mismanagement has circled around Li ever since his interest in buying the Serie A giants emerged last year.

The New York Times and financial paper Il Sole 24 Ore both ran investigations pointing to a lack of funds, and now this latest report from Corriere della Sera suggests that the situation has reached the point where Yonghong Li is virtually bankrupt.

Packaging company Zhuhai Zhongfu, valued at €60m and which his holding company Shenzhen Jie Ande owns 11.39% of, has been ordered on sale via an auction by the tribunal in Futian to repay the Jiangsu and Canton banks.

It was also revealed over the weekend that the China Securities Regulatory Commission had announced the start of an investigation into Shenzhen Jie Ande –  who they believe have been hiding their bankruptcy for months.

Yonghong Li paid €740m to buy the Rossoneri from Silvio Berlusconi in April 2017, but could only make the purchase thanks to a high-interest loan from venture capital fund Elliott Management.

Corriere della Sera have now insisted that Yonghong Li cannot repay that loan and is also being sued for unpaid debts by two banks.

The paper reports Yonghong Li purchased Milan through €300m from Elliott, €340m in offshore funds and just €100m of his own money.

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