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AC Milan owner Yonghong Li declared ‘bankrupt’ with businessman’s assets to be ‘auctioned off on Chinese version of Ebay’

Reports claim he is unable to pay back high-interest loan taken from hedge fund and is being sued by two banks

AC Milan owner Yonghong Li is reported to have been declared bankrupt

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AC MILAN'S owner Yonghong Li has declared bankruptcy and his assets will be auctioned off, according to reports Italy.

The Chinese businessman completed the purchase of the seven-time European champions for £628million in the summer.

 AC Milan owner Yonghong Li is reported to have been declared bankrupt
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AC Milan owner Yonghong Li is reported to have been declared bankruptCredit: EPA
 AC Milan owner Yongong Li with former chief Silvio Berlusconi
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AC Milan owner Yongong Li with former chief Silvio BerlusconiCredit: AFP

A lack of transparency clouded the mega-deal, with many questioning where the vast amount of money was coming from.

An investigation from  found that Li's debts have now culminated in being forced to declare himself bankrupt and his assets will be auctioned off on Taobao — the Chinese version of Ebay.

The initial deal was frequently delayed as Li was unable to stump up the entire fee, and subsequently took out a loan from high-interest hedge fund Elliott Management.

The report claims he can no longer afford to pay the money back, and is also being sued by two other banks over unpaid debts.

 AC Milan owner Yonghong Li watches his side in action at the San Siro
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AC Milan owner Yonghong Li watches his side in action at the San SiroCredit: Associated Press
 Chinese owner Yonghong Li signs deal to complete take over of AC Milan
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Chinese owner Yonghong Li signs deal to complete take over of AC MilanCredit: EPA

On top of that, it claims he was already insolvent at the time he completed the deal last April.

Li had also been investigated by the China Securities Regulatory Commission over illicit practices from his holding company Shenzhen Jie Ande, after failing to disclose their bankruptcy.

Former owner Silvio Berlusconi had put the club up for sale for some time before a deal was concluded.

But had insisted the reason for the delay was because he wanted to ensure the buyers had Milan's best interests at heart.

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