The Chinese businessman failed to increase the club’s capital last month, before missing the deadline to repay the loan he had taken out.
As a result Elliot have taken over the club, and pledged to inject €50 million into the Milan giants.
“Ownership and control of the holding company that owns AC Milan has today been transferred to finds advised by Elliott Advisors (UK) Limited (“Elliott”),” read a statement released by the new owners.
“This transfer has occurred as a result of steps taken to enforce Elliott’s security interests after the previous owner of AC Milan defaulted on its debt obligations to Elliott.
“Having assumed control, Elliott’s vision for AC Milan is straightforward: to create financial stability and establish sound management; to achieve long-term success for AC Milan by focusing on the fundamentals and ensuring that the club is well-capitalized; and to run a sustainable operating model that respects UEFA Financial Fair Play regulations.
“Elliott fully appreciates the challenge and responsibility that ownership of this great institution entails. Elliott is pleased not only to support the club during this difficult time, but also by the challenge of achieving ambitious objectives in the future via the on-field success of coach Gattuso and his players.
“As first measures, Elliott intends to inject €50m of equity capital to stabilise the club’s finances, and plans to inject further capital over time to continue to fund AC Milan’s transformation.”
Milan finished sixth in Serie A last season, but have since been excluded from the Europa League due to violations against Financial Fair Play pending an appeal.