Granted in 2021 to the Luxembourg-based vehicle through which Chinese conglomerate Suning controls Inter, the loan was guaranteed by the firm's stake in Inter Milan.

Under such a scheme Oaktree had the potential right to take control of the club in the event of a default.

"Our initial focus is operational and financial stability. We have great respect for Inter Milan's management team," said Oaktree's Alejandro Cano.

Founded in 1908, Inter Milan are among the most famous clubs in Italian football, having won the league 20 times, and are home to top players including Lautaro Martinez and Nicolo Barella.

The turmoil off the field contrasts with the club's success on it, with Inter having last month secured their 20th Serie A league title and the second under Suning's ownership.

Suning bought a majority stake in the club in 2016 in one of the highest profile forays by a Chinese business into European football.

Since then, Chinese authorities have imposed curbs over overseas spending in sport and Suning has been hit by the COVID-19 downturn.

In a letter to fans published on the club's website on Saturday, Inter Milan chairman Steven Zhang, the 32-year son of Suning's founder Zhang Jindong, warned the club's stability was at risk as attempts to find an agreement with Oaktree had been unsuccessful.

There was no immediate comment from Suning. Inter Milan made an annual loss of 86 million euros in the 2022-2023 fiscal year and its total debts stood at 807 million euros.

Oaktree's move mirrors the takeover of Inter's local rivals AC Milan by U.S. hedge fund Elliott Management in 2018. Elliott took control of AC Milan after Chinese businessman Li Yonghong missed a payment to the club.

Elliott eventually sold AC Milan to RedBird Capital Partners in 2022 in a 1.2 billion euro deal.