Elliott Management takes over AC Milan
Storied Italian football team has been taken over by Elliott Management after owner Li Yonghong defaulted on debt owned by the hedge fund.
Elliott Management and owner Paul Singer are most famous for a nearly 15-year battle with Argentina's government over defaulted sovereign debt. The fund eventually won but only after an extremely acrimonious process that included seizing an Argentine ship in an African port. It's tactics push the envelop and that's how it's developed a reputation as a vulture fund.
In this episode, Elliott swooped in at the last minute to provide Li with financing to buy the club from Silvio Berlusconi in 2017 for €740 million. Bloomberg repots that more than €32 million euros were past due of €400m in debt owned by the fund. Friday was the deadline to make the payments.
Knowing Elliott, they will find a way to make a pile of money on this deal and some kind of court fight won't be too far off.
