Manchester: Manchester United on Friday announced legal action against Italian side Lazio for non-payment of the transfer fee for Dutch defender Jaap Stam.

Lazio owner Sergio Cragnotti’s food company Cirio, which has a controlling stake in the Rome club, was declared on Friday to have defaulted in repaying a 150 million euro (about $150 million) loan. Trading in Lazio shares was suspended.

Manchester United said they are still owed £12 million for Stam’s transfer at the beginning of last season. “Discussions have been ongoing to reach agreement for a rescheduling of the payment of this debt, and compensation for the delay, but these have still not reached a conclusion,” the English club said in a statement. (AP)