Football: US hedge fund Elliott takes over AC Milan
What's the story
7-time European champions AC Milan have new owners as US hedge fund Elliott Management made an announcement of taking over the Italian club.
Elliott Management took this step after Milan's former owner Li Yonghong failed to repay debt.
The Chinese owner had missed the deadline set to repay $38 million.
Elliott Management is expected to inject $58 million to stabilize things at AC Milan.
Statement
What has Elliott Management stated?
Elliott Management issued a statement claiming that it is set to usher a new chapter at AC Milan.
The hedge fund added that Elliott's vision for Milan is straightforward.
It is eyeing to create financial stability and also establish sound management.
The new owners want to ensure that the club is well capitalized.
It will also abide by UEFA Financial Fair Play regulations.
Information
Know more about Elliott Management
The company is owned by American billionaire Paul Singer. The 71-year-old made his fortune by investing in bankrupt and distressed companies besides convertible bonds. The company was formed in 1977. In current market, the hedge fund manages around $35 billion.
Bankruptcy
Chinese owner was declared bankrupt this year
Earlier this year, AC Milan owner Yonghong Li was declared bankrupt.
His assets were then auctioned off on Taobao- the Chinese version of eBay.
Last year in May, Yonghong had declared that he has acquired AC Milan from former owner Silvio Berlusconi, who was in charge for three decades.
Yonghong had promised to strengthen the capital and financial position of the club.