Spirited interest in Nant
AUSTRALIAN Whisky Holdings has agreed to pay almost $1.9 million for the Nant whisky brand and equipment at the beleaguered distillery.
The listed whisky company has revealed it has struck a deal with the receiver of the company previously called Nant Distillery to buy key equipment and trademarks.
Australian Whisky, also known as AWH, had previously bought the Nant Estate at Bothwell, north of Hobart. But it was in dispute with receiver FTI Consulting over distillery equipment and the Nant name.
FTI was appointed by finance company Eclipx, which was owed about $2.5 million for loans secured against equipment at the distillery.
The receiver had called for expressions of interest in Nant equipment and trademarks after early negotiations with Australian Whisky chief Chris Malcolm broke down.
Mr Malcolm had also challenged the receiver to come and remove the equipment and suggested Nant may be rebranded as the brand had been damaged.
But Australian Whisky has now issued a statement to the stockmarket saying it has struck a deal, and will pay $1.87 million.
It paid a $220,000 deposit on July 2 and a further instalment of $660,000 is due by the end of the month.
The balance – $990,000 – is to be paid to Eclipx over a two-year period, subject to conditions. Eclipx will continue to retain security over the distillery until all obligations are met.
Australian Whisky will continue to manage the barrel investment scheme that was run by Nant companies.
Nant had invited people to invest in barrels of its whisky under 13 different investment schemes, promising a return of 9.55 per cent a year until maturation, compounded over four years.
Australian Whisky, after an audit of barrels, has since declared many of the barrels that investors paid for were not filled or do not exist.
The Sydney-based company is expected to encounter disquiet from barrel investors unhappy with the buyback arrangements or the audit process.