MILAN (AP) – Elliott Management has promised to inject 50 million euros ($66 million) in capital after taking over Italian club AC Milan.
It says former owner Li Yonghong missed Friday's deadline to repay part of a loan worth more than 300 million euros from the U.S.-based hedge fund.
Elliott says it has repossessed Li's assets starting with the holding company in Luxembourg that he used to buy seven-time European champion Milan in April 2017.
A statement from Elliott says: "Ownership and control of the holding company that owns AC Milan has today (Tuesday) been transferred to funds advised by Elliott ... after the previous owner of AC Milan defaulted on its debt obligations to Elliott."
The fund had been expected to sell the club on but the statement adds that on top of the 50 million euros "to stabilize the club's finances," it also "plans to inject further capital over time to continue to fund AC Milan's transformation."
Milan finished sixth in Serie A last season to qualify for the Europa League but it has been banned for one year by UEFA for overspending. It is appealing.