Indian wine company Indage Vintners has staved off the threat of liquidation after agreeing a restructuring of its huge debts.
The company, the best-known wine producer on the sub-continent, now has until 15 June to satisfy Bombay’s High Court that a winding-up order against it should be rescinded.
Indage told the court that managing director Ranjit Chougule and other members of his family would invest INR750m (US$17m) in a deal supported by local banks.
Some unsecured creditors, who pursued the original winding-up order, are reported to oppose the agreement, but will have to accept it if 75% of Indage’s creditors back the deal.
Indage, formerly known as Champagne Indage, has made a number of acquisitions in recent years, including Australia’s Tandou, Vine Crest and Loxton, as well as UK distributor Darlington Wines and bottling company Corby Bottlers.
However, it was hard-hit by the recession, running up debts estimated at INR4bn and incurring a loss of nearly INR500m in the nine months to the end of 2009.
Written by Richard Woodard