"Craft Gin Club has warned lenders that it cannot continue without a financial restructuring that will strip bondholders of promised free gin deliveries. The company is seeking a Company Voluntary Arrangement (CVA) to extinguish £4.2 million of debt in exchange for 18.3% of equity."
"The board has concluded that the company is insolvent and unable to pay its debts as they fall due. If the CVA plan fails to secure the necessary support from lenders, administration is the most likely outcome."
Craft Gin Club is at risk of administration due to insolvency, requiring a financial restructuring to avoid losing £4.2 million in debt. The company has engaged Leonard Curtis for a Company Voluntary Arrangement (CVA) to exchange debt for equity. If 75% of lenders do not support the plan, bondholders may receive little to nothing. Once celebrated for its success in the craft drinks market, the company has struggled despite initial growth during the pandemic and previous plans for a stock market flotation.
Read at Business Matters
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