As a once and future Argentine president can tell you, Paul Singer does not take kindly to not being paid on time and in full. He’s a realstickler for it, and he tends to get his way, eventually. Unfortunately, Li Yonghong has not been in a position to take Cristina Kirchner’s advice, which would probably go something like: Do not under any circumstances borrow money from Paul Singer, and if for some reason you do, pay him or it will literally drive you crazy. This is because, last year, Li needed Singer’s €303 million to buy famed Italian soccer team AC Milan from famed Italian horndog Silvio Berlusconi, and now because Li doesn’t have anything like the €32 million he needed by Friday to service that growing pile of Elliott Management-held debt.
This means that, like the flagship of the Argentine navy, Paul Singer essentially owns AC Milan, and that unlike the Libertad, the courts are unlikely to take it away from him. Now as we—and, briefly, a soon-to-be-vanquished Singer foe—were delighted to learn, the usually dour hedge fund billionaire has a soft, and uncharacteristically puckish, spot for soccer. That being said, he doesn’t actually want to own a soccer team, least of all one with as many problems as AC Milan. Plus, he likes making money even more than the beautiful game, and with Milan’s value hovering at around twice the €335 million he’s put up, he’s already taking offers for something he technically doesn’t exactly own yet.
The Ricketts family said in a statement in June that it was interested in acquiring AC Milan, one of Europe’s most successful football teams. The owner of the Cubs has held informal talks about a deal with Elliott, a person informed about the talks said….
Elliott, which struck the loan deal with Mr Li under Luxembourg law, is set to own the club after Mr Li failed to repay €32m of a high interest loan owed to the hedge fund before a payment deadline elapsed on Friday evening, said people briefed on the terms of the agreement. If the hedge fund opts to respect the loan terms, the change in control should take less than a week to be made official under Luxembourg law.