The Suning Commerce Group

CafeCordoba

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No it's much worse. Thohir actually had a plan even if we didn't like it. His plan was to stabilize the club then sell to someone who could invest into the club.

Stevie and co has no real plan except bandaids to stop the leaks. They don't want to sell except for an absurd offer nor are they willing to invest.
Well yeah. They had a plan before COVID and their business going south in China.

Now the plan is to try to keep winning, try to keep the CL status to somehow maintain the expensive squad BUT at the same time we need to sell assets, reduce costs . It's a cycle which doesn't have a good ending. It's a vanity project for Zhang so he wants to parade with the trophies and be friends with the players. :lol:
 

Capo

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Well yeah. They had a plan before COVID and their business going south in China.

Now the plan is to try to keep winning, try to keep the CL status to somehow maintain the expensive squad BUT at the same time we need to sell assets, reduce costs . It's a cycle which doesn't have a good ending. It's a vanity project for Zhang so he wants to parade with the trophies and be friends with the players. :lol:

Following COVID they (China) have since slowed down. I was reading that CCP is developing a redistribution of China's wealth for fairer equity.

Meaning, higher taxes .etc to promote more growth and increase GDP bottom up. Not sure of the Zhang's and where they fit but it seems like if they're a similar vain to Jack Ma they could have real troubles in the near future, if not now.

Just a matter of time before they default on Oaktree loan. There is already reports Suning has defaults on others already...
 

interman

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Now Bastoni, barella and we lost a golden generation that was able to seriously dominated under good manager.
 

IM21

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these guys are being sued once per month it seems

1675438492919.png
 

IM21

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According to Steven Zhang's creditors, the Inter president "risks up to three months in prison" in Hong Kong. This is what emerges from the documents that Calcio e Finanza were able to view, on the lawsuit that arose in the Asian country after the number one of the Nerazzurri club did not repay a debt of over 300 million to the China Construction Bank Asia.

In detail, in fact, the creditors have sued not only in the USA, but other legal actions have also started: one in Milan and two in Hong Kong, where the court initially agreed with the creditors. In particular, according to the first request for judgment, Steven Zhang will have to appear on March 13 before a judge for what is called a "debtor examination". In particular, according to the documents filed in the USA by the creditors, Zhang will be "orally questioned to ask him if Zhang has debts, how many debts he is owed and what other assets or means he has to satisfy the sentence" with which he was obliged to repay the over 300 million in debt. In addition, Zhang shall also "produce any book or document in his possession or power" relating to his assets and liabilities.

According to the creditors, it is "a cross-examination, and that of the strictest kind" in which the debtor must answer all the questions "quite relevant and correctly asked" and provide "all the necessary details". "This procedure will help ascertain which assets belong to Zhang and which debts are owed to him, so that they can be used to satisfy the Hong Kong ruling and the debt he owes to China Construction Bank Asia." documents.

The examination of the Hong Kong debtor will cover:

assets, liabilities, income and expenses of Zhang, disposals of assets and transfers of assets by Zhang;
his affairs; the means of him to satisfy the sentence of Hong Kong;
and if Zhang improperly structured his assets and his relationship with Inter to avoid complying with the Hong Kong ruling.

However, there is a significant risk: based on the precedents cited by creditors, in fact, the risk is that of imprisonment of up to three months. "If the Court has ascertained, following the examination carried out, that the debtor of the sentence has hidden assets in order to avoid the fulfillment of the sentence or the liability object of the sentence, in whole or in part, or has voluntarily omitted to answer any questions, may, at its discretion, order the debtor's imprisonment for a period not exceeding three months,” the documents read.

However, this is not the only risk for Steven Zhang. The creditors have in fact filed a second lawsuit against the Inter president for contempt in relation to the accusation of perjury during the first trial. Indeed, China Construction Bank Asia "will ask to convict Zhang of contempt of the Hong Kong court due to his false sworn statements in the proceeding that led to the entry into force of the Hong Kong sentence".

“The basis for the indictment request will be that Zhang knowingly made false statements to the Hong Kong Court including falsely swearing that he was not involved in and unaware of the refinancing transaction, did not sign the Intercreditor Agreement and the Personal Guarantees , and his signatures on those documents were forged,” the documents read. "If the court rules against the accused, they may be jailed or fined," concluded the creditors of China Construction Bank Asia.
 

ADRossi

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According to Steven Zhang's creditors, the Inter president "risks up to three months in prison" in Hong Kong. This is what emerges from the documents that Calcio e Finanza were able to view, on the lawsuit that arose in the Asian country after the number one of the Nerazzurri club did not repay a debt of over 300 million to the China Construction Bank Asia.

In detail, in fact, the creditors have sued not only in the USA, but other legal actions have also started: one in Milan and two in Hong Kong, where the court initially agreed with the creditors. In particular, according to the first request for judgment, Steven Zhang will have to appear on March 13 before a judge for what is called a "debtor examination". In particular, according to the documents filed in the USA by the creditors, Zhang will be "orally questioned to ask him if Zhang has debts, how many debts he is owed and what other assets or means he has to satisfy the sentence" with which he was obliged to repay the over 300 million in debt. In addition, Zhang shall also "produce any book or document in his possession or power" relating to his assets and liabilities.

According to the creditors, it is "a cross-examination, and that of the strictest kind" in which the debtor must answer all the questions "quite relevant and correctly asked" and provide "all the necessary details". "This procedure will help ascertain which assets belong to Zhang and which debts are owed to him, so that they can be used to satisfy the Hong Kong ruling and the debt he owes to China Construction Bank Asia." documents.

The examination of the Hong Kong debtor will cover:

assets, liabilities, income and expenses of Zhang, disposals of assets and transfers of assets by Zhang;
his affairs; the means of him to satisfy the sentence of Hong Kong;
and if Zhang improperly structured his assets and his relationship with Inter to avoid complying with the Hong Kong ruling.

However, there is a significant risk: based on the precedents cited by creditors, in fact, the risk is that of imprisonment of up to three months. "If the Court has ascertained, following the examination carried out, that the debtor of the sentence has hidden assets in order to avoid the fulfillment of the sentence or the liability object of the sentence, in whole or in part, or has voluntarily omitted to answer any questions, may, at its discretion, order the debtor's imprisonment for a period not exceeding three months,” the documents read.

However, this is not the only risk for Steven Zhang. The creditors have in fact filed a second lawsuit against the Inter president for contempt in relation to the accusation of perjury during the first trial. Indeed, China Construction Bank Asia "will ask to convict Zhang of contempt of the Hong Kong court due to his false sworn statements in the proceeding that led to the entry into force of the Hong Kong sentence".

“The basis for the indictment request will be that Zhang knowingly made false statements to the Hong Kong Court including falsely swearing that he was not involved in and unaware of the refinancing transaction, did not sign the Intercreditor Agreement and the Personal Guarantees , and his signatures on those documents were forged,” the documents read. "If the court rules against the accused, they may be jailed or fined," concluded the creditors of China Construction Bank Asia.
 

wera

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So yeah he should sell the club so he can avoid prison
 

NimAraya

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Hope that means he'll be forced to sell the club soon.
 

Pimpin

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Suning is a major reason why we don't generate enough revenue.
Milan and Juve are swimming in cash, don't get me started on Napoli
 

Helenio Herrera

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It's all a façade to get PIF interested. Zhang mastermind. Inter saved.
 

Corrode

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from Asia-Sentinel media:

Big Four Bank Sues Son of Major Retailer Over Soccer Club Debts​

China Construction Bank (Asia) alleges Inter Milan president refuses to repay debt of over US$300 million​

One of China’s biggest state-owned banks is squaring off against Steven Zhang, the scion of one of China’s biggest private retailers, the troubled Suning.com, over his alleged refusal to repay more than US$300 million he borrowed. The 32-year-old Zhang is president of Inter Milan, one of Italy’s most prominent soccer clubs.

China Construction Bank (Asia) Corporation (CCBA) alleges Zhang, the son of Zhang Jindong who founded the Shenzhen-listed Suning.com, is refusing to repay more than US$300 million which it owes the bank, and is seeking to have Steven Zhang found in contempt of a Hong Kong court for lies which he allegedly told the court. Inter Milan was ranked the 14th most valuable football club in the world and the second most valuable in Italy with a value of US$743 million by Forbes in 2021.

CCBA is seeking to obtain information on the relations between Inter Milan and Zhang from major Western financial institutions like Goldman Sachs and Oaktree Capital Management. It has commenced legal proceedings in Italy and Hong Kong to collect what it is owed, and a debtor examination of Zhang is scheduled to take place in a Hong Kong court on March 13, said a memorandum filed in the US District Court for the Southern District of New York on January 19.

CCBA is a subsidiary of China Construction Bank, one of the Big Four Chinese state-owned banks.

“Outside of China, the Suning Group is perhaps best known for acquiring a 70 percent stake in F.C. Internazionale Milano S.p.A (“Inter Milan”), an Italian soccer team with a worldwide following based in Milan,” said the memorandum.

Zhang became president of the club in 2018, two years after Suning purchased the majority stake for US$307 million in 2016. According to his Twitter account, Zhang currently lives in Lombardy, the northern Italian region whose capital is Milan.

“Zhang’s social media accounts display the immense wealth at his disposal, including photographs of at least three luxury sports cars with a total value exceeding US$8 million, as well as luxury watches with a total value of close to US$1.5 million,” said the memorandum filed in the US court. “Moreover, Zhang has allegedly conducted his financial affairs so that few assets are owned directly in his name—despite his ostentatious displays of wealth—in order to hinder his creditors.”

In July 2017, Chinese state broadcaster CCTV, the government’s mouthpiece, criticized Suning for purchasing Inter Milan, portraying the deal as a financially risky and irrational foreign acquisition.

“Most of these companies have high debt ratios domestically, but they borrow money from banks to squander abroad or to buy assets,” Yin Zhongli, researcher at the Chinese Academy of Social Sciences’ Financial Research Institute, told CCTV about Suning’s purchase. “If there’s an error with foreign investment, it adds risk for domestic banks and the financial system, while the companies dress themselves in gold.”

Now CCBA is suffering the consequences of Suning’s purchase of Inter Milan. It has asked the US court for permission to serve subpoenas to several financial institutions with offices in New York, including Goldman Sachs, Oaktree Capital Management, and Bain Capital, the memorandum disclosed. CCBA is seeking information from these financial institutions because the bank believes they are likely to have information on Inter Milan and its relation with Steven Zhang and Suning Group, the memorandum explained.

Zhang has engaged financial advisers to explore a potential sale of Inter Milan. According to media reports, he is working with Goldman Sachs and Raine Group to search for a buyer. The potential proceeds from the sale may be used to repay a US$336 million loan that Suning borrowed from Oaktree Capital Management Group in May 2021 to assist Inter Milan, as reported by Forbes. Before entering into the transaction with Oaktree, Zhang discussed similar financing with Bain Capital, according to media reports.

In mid-January, an Italian newspaper, Gazzetta dello Sport, reported that Zhang was in Saudi Arabia seeking minority investments in Inter Milan. On October 28, 2022, Bloomberg reported Zhang as saying Inter Milan was not for sale, contradicting earlier media reports that he was seeking to sell the Italian soccer club for as much as US$1.3 billion.

Zhang owned a company that borrowed money from CCBA in 2020 to refinance debts it had incurred in 2019, when he acquired 65 percent of a Chinese firm which runs thousands of convenience stores in China for US$108.9 million. The acquisition was refinanced in 2020 by a US$165 million loan and US$85 million of notes that were due to be repaid to CCBA in 2021. Zhang personally guaranteed the debts, but refused to repay them, CCBA alleges.

The failure to repay these debts was sparked by several defaults. Suning.com defaulted on bank loans totaling US$1.7 billion, according to its financial statements on May 12, 2021. On June 4, 2021, two related companies, Suning Appliance and Suning Zhiye Group, as well as Zhang Jindong were named as debtors in Chinese judicial proceedings, which constituted another event of default.

Suning.com has been in the red since the second half of 2020 after the Chinese retail giant’s debts were reported to exceed RMB100 billion (US$14.8 billion). In July 2021, the firm sold almost 17 percent of its shares to a group of investors including a local Chinese government-backed fund, Chinese e-commerce giant Alibaba, and smartphone giant Xiaomi. After the transaction, Zhang Jindong lost control of Suning.com.

When Suning Appliance, Steven Zhang, and his father Zhang Jindong failed to repay the debts as demanded by CCBA, the bank filed a writ of summons against Steven Zhang in Hong Kong’s Court of First Instance on August 2, 2021. About three months later, CCBA applied to the Hong Kong court for summary judgment against Zhang, who opposed the summary judgment application. Zhang argued that he was not involved in and was not aware of the refinancing transactions and said his signatures on the debt agreements were forged.

A Hong Kong judge, Anthony Chan, rejected Zhang’s arguments and granted summary judgment in favor of CCBA against Zhang on July 19, 2022. Justice Chan explained, “I am unable to accept that Zhang has shown a believable defense of forgery. His evidence, assessed against the undisputed background circumstances, is contrary to inherent probabilities and common sense, and his explanations on various evidential fragilities ring hollow.”

Justice Chan ordered Zhang to pay US US$255 million plus interest to CCBA.

CCBA said it plans to apply to have Zhang committed for contempt of the Hong Kong court due to his false sworn statements in the proceedings leading to the Hong Kong judgment.

Italian legal action

CCBA commenced legal action in Italy on July 8, 2022 to render ineffective a shareholder resolution by Inter Milan, with the aim of regaining part of its debt.

“Zhang serves as the President of a prominent Italian soccer team – Inter Milan FC – under a highly unusual shareholder’s resolution of appointment that eschews any direct compensation for Zhang’s services,” said the memorandum.

CCBA alleged in a pending legal action that Zhang appears to have structured his appointment terms so as to hinder creditors from getting hold of his salary.

As alleged in CCBA’s legal proceedings in Italy, Inter Milan waived salary payments to Zhang, which under Italian law constitutes a “gratuitous act having economic value” that affects Zhang’s property interests and his ability to satisfy the debt owed to CCBA.

Inter Milan did not respond to Asia Sentinel’s questions.
 

.h.

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Milan and Juve are swimming in cash, don't get me started on Napoli
IIRC Milan's revenue is lower than ours? They just have a much cheaper cost basis
 

.h.

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Yup, and amortisation bill i guess as well?
 
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