How will Evergrande’s bankruptcy affect Inter?
What happened to Evergrande?
Evergrande (previously Hengda Group) was founded in 1996 by Xu Jiayin in 1996 and located at Shenzhen, China, rapidly increased its size during China’s boom in housing by purchasing land and delivering more than 1300 market rate and luxury apartment buildings over 280 locations in China. Read more here: https://bankruptcyhq.com/state-laws/virginia-bankruptcy/
As the number of homes sold started to decline in the past few times, Evergrande debt increased and the company expanded into different areas like football, electric vehicles, and even the sale of bottled water. Evergrande employs 200,000 employees directly and indirectly and is responsible for around 3.8 million jobs each year.
The impact of bankruptcy for those who own Internazionale and Suning Group
In 2021, at the end of the year the Fitch, the credit ratings agency Fitch confirmed what markets have been suggesting for some time – that Evergrande one of China’s biggest real estate developers, was unable to pay its obligations to make payments that were due on December 6.
The real estate company is currently in a dire circumstance and its potential bankruptcy could severely affect those who own Internazionale and as well as the Suning group.
For Inter the risk is real as Suning is the owner of 2.6 billion euros of Evergrande shares. In the end, Suning has significant cash flow issues as China has already suspended Evergreen’s permission to construct an enormous stadium in Guangzhou. Guangzhou.
The long-term financial challenges are thought to be the main reason Suning’s decision to not increase the amount of money it is putting into the Nerazzurri and the deportation of Antonio Conte, Achraf Hakimi and Romelu Lukaku.
As of now, Inter’s performance has not been affected since the team is fighting for the title and has been selected for their UEFA Champions League knockout stage.
They currently have a price of 67.0 according to the Champions League winner odds to win the game.
This company delayed many bond payments over the past few months and did not pay the interest due in September, has failed to make $82.5 million.
According to the ratings agency, the company is currently in default. This is not the only problem even more, it is also reported that the Bloomberg Billionaires Index, which evaluates the wealth of billionaires also shows the fact that Zhang Jindong, owner of Suning and Inter, lost $2 billion by 2021. This is half of his wealth.
The company’s total debt is believed to be in excess of $300 billion. There are a lot of concerns regarding the effects of Evergreen’s bankruptcy , not only in the property market or Chinese market but on the world market.
What’s the next step to Inter?
The Zhang family has repeatedly indicated their desire to retain control of Inter however, it is believed that increasing financial difficulties may cause them to dispose of the club. According to reports, numerous investment firms have expressed interest in buying Inter.
But, Suning is not willing to accept any lower than what it is asking that currently stands around 1 billion euros.
Furthermore, since the beginning of October, there’s speculated that the family of Saudi Arabia, in the form of the Public Investment Fund (PIF) group, is looking to purchase Inter.
The company, which changed the game of football when it purchasing Newcastle United for PS300m is interested in acquiring the storied European club.
The purchase from the team by Mohammed bin Salman would strengthen the position of the club in the Italian league, but it would also will give the club the means to compete with the best clubs in Europe and help them regain their status as a contender. for to Champions League.
At the moment, whichever the agreement that is being made, it’s essential that the club provides athletes the security they require to keep their performances up and avoid any payment issues or similar problems and also that the members feel that they are part of the club. Still, the club.