Mansion House brandy on the verge of being acquired
Media reports suggest that Edelweiss Asset Reconstruction Company (ARC) has started accumulating the distressed debt of Mansion House brandy maker Tilaknagar Industries. This move raises the chances of potential acquirers like liquor baron Kishore Chhabria.
Edelweiss ARC has bought more than 45% of the Rs 800-crore debt and is in discussions with existing lenders to mop up the remaining.
While Edelweiss is mopping up the debt from Punjab National Bank and IFCI , it is still in discussions with other lenders, including State Bank of India. Thereafter, it will kick-start a restructuring plan involving conversion of debt into equity and infusing additional working capital, if necessary.
Chhabria ,owner of ABD is writing to Edelweiss, putting them on notice about the disputed ownership of Mansion House brand, the key asset of the Mumbai-based Tilaknagar. Dutch distiller Harman Jensen along with Chhabria are fighting in Indian courts to reclaim the brand, though the initial court orders went in favour of Tilaknagar. Chhabria and the other likely suitors will be closely tracking the restructuring moves of Edelweiss.
Besides Mansion House, Tilaknagar has a primary distillation facility at Shrirampur in Maharashtra and a few small bottling plants. Mansion House sells over 5 million cases of brandy in large southern markets.
