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Elliott to inject 120 million euros into AC Milan to reimburse bonds: source

The AC Milan logo is pictured on a pennant in a soccer store in downtown Milan, Italy April 29, 2015. REUTERS/Stefano Rellandini/File Photo Picture Supplied by Action Images

MILAN (Reuters) - U.S. hedge fund Elliott Management will inject 120 million euros ($141 million) into the coffers of Italian soccer club AC Milan to reimburse two bonds, a source said on Tuesday.

The payment will essentially cancel the club’s financial debt and further stabilize its balance sheet, the source added.

Elliott, which took over the Serie A team in July, had previously lent the club 128 million euros, underwriting two bonds with average interest rates of around 10 percent.

($1 = 0.8490 euros)

Reporting by Elvira Pollina, writing by Stephen Jewkes