Italian media: Former Milan boss Li Yonghong has been declared bankrupt and is expected to complete the liquidation process in January next year

According to Corriere della Sera citing "Football and Finance" news, Hong Kong court documents show that former Milan owner Li Yonghong was declared bankrupt in July this year due to failure to repay debts of US$289 million (approximately 250 million euros). A hearing is expected to be held in January next year to complete the liquidation process.

These events stem from lawsuits filed by five Cayman Islands investment funds owned by China CITIC International Financial Holdings Co., Ltd. This amount of approximately 250 million euros was a guarantee provided by Li Yonghong for the issuance of US$150 million bonds when he acquired Milan in 2017. According to the judgment, the Hong Kong court rejected Li Yonghong’s objections that the debt amount was incorrectly calculated and that a valid payment request notice was not received.

Recently, current Milan CEO Giorgio Forlani reviewed the behind-the-scenes story in a speech at Harvard Business School. He said: "I never considered working in the sports industry. In 2010, I joined Elliott Hedge Fund as an investment analyst, focusing on public and private equities, private equity and real estate. Our philosophy is that we can provide companies with We come up with various investment ideas and if they look like a good opportunity, we evaluate it."

"In early 2017, a lawyer called me and asked me if I had considered investing in Milan. I was thinking, 'Are you crazy? Why would I do this? ' But then I learned more about Li Yonghong's payment. 740 million euros, but he was short of 300 million euros, and if he couldn't find the remaining funds within three weeks, he would lose 200 million euros in collateral. I thought: 'Okay, this seems like an opportunity to get a good return, regardless of the business. ' So I decided to dig into it, and after we proposed the idea to Paul and Gordon Singer and got approval, I asked Li Yonghong how long it would take. They suggested three years, but he guaranteed that he had the funds and they were frozen in China, so 18 months was enough. However, in July 2018, he stopped injecting money into the club completely. As a result of his failure to meet his loan obligations, Elliott Hedge Funds took over the club. To say that Milan was mismanaged is an insult to a company that was actually mismanaged."

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