Preparing to save the ‘Bira’ beer boat which is in debt of 1500 crores, this big decision has been taken

Bira 91 Crisis: Beera 91 is a well-known name among craft beer lovers in India. But this company has been going through financial crisis for some time now. Now, to save the sinking company, its largest lender Anikat Capital has taken over. A new board led by Anne Cut Capital has drawn up a major recapitalization plan to revive Bira 91. Under this plan, the existing large investors of the company are being prepared to show a way out so that fresh capital can be brought into the company.

Bira 91 is in dire straits

The economic condition of Bira 91 is currently going through a very bad phase. The company has about Rs. 1,000 to 1,500 crores are huge liabilities. The work of the company has come to a complete standstill for the last one year. The situation got so bad that Bira 91 founder Ankur Jain had to resign from the company on 22 July. A two-year dispute, stagnant pay and mounting debt forced him and his family away from the board. Ankur Jain’s 17.8 per cent stake was taken by Anikat Capital, the company’s largest lender. In return, the Jain family was absolved of all personal liabilities to the company. Its shares were held as security for loans given by any cut capital. Today, the brand value of Bira 91 is estimated to be around Rs 300 crore only.

Preparing to eject old investors

Fresh funds are badly needed to revive the company. But new investors, including family offices or private equity firms, have a big caveat. They want those old investors who don’t want to participate in this revival plan to be weeded out, before investing the money. Currently, Japan’s Kirin Holdings, Peak XV Partners and Belgium’s Sofina together hold 41.1 percent stake in the company. In addition, some family offices with high-net-worth individuals (HNIs) also hold small stakes. Japanese firm Kirin Holdings, which holds a 20.1 per cent stake, has also appointed global firm EY to sell its stake, sources said. Kirin joined the company in the year 2021 with a long vision, but now wants to exit as per its global strategy.

Lenders have to bear the loss

Financial creditors are also going to take a big hit in this process of bailing out the company. Creditors such as Trifecta Capital, IDFC First Bank and Kirin Holdings have been offered settlements. According to a source, all these offers are based on consensus on valuation. Financial lenders have to write-off a large portion of the loans they provide. It is expected that they will be able to recover barely one-fifth (about 20 percent) of the total amount given to them. However, a revival plan requires everyone to come together. With the reins of the board in the hands of the largest lender, the confidence of other stakeholders has also increased.

A new proposal was put before the sellers

Efforts are being made to bring every party together to bring the company back on track. Bira 91 has also approached about 60 of its major vendors. These vendors have been asked to settle their dues and continue to provide their services to the company so that operations can resume. However, any company including Cut Capital, Kirin, Peak