Spirit maker Tilaknagar Industries Ltd on Monday announced that it has made a prepayment of outstanding debt along with accrued interest of Rs 54.1 crore of Edelweiss Asset Reconstruction Company (EARC) with respect to two of its restructured loans.

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Subsequent to the prepayment of the principal amount and interest, the total existing debt of EARC has been reduced to Rs 201.09 crore, the company stated in an exchange filing.

The owner of popular Mansion House Brandy, Tilak Nagar Industries had in February 2020 entered into a long-term agreement with EARC with respect to the restructuring of the total loans of Rs 523.32 crore owed to some of the lender banks and a financial institution.

EARC is acting as Trustee of three trusts i.e EARC Trust SC 233, EARC Trust SC 241 and EARC Trust SC 269.

Tilaknagar Industries has made a prepayment of the entire outstanding principal along with accrued interest of Rs 54.10 crore towards EARC Trust SC 233 and EARC Trust SC 269.

Also under the terms, the corresponding balance debt of the two trusts aggregating to Rs 126.63 crore has been waived by EARC and accordingly the same shall be written back by the company.

The total existing debt of EARC now stands reduced to Rs 201.09 crore (including Balance Debt of Rs 3.62 crore) representing debt of EARC Trust SC 241 only, the filing stated.

As of February 2020, the total debt owed by the company was Rs 523.32 crore, which was restructured by EARC at Rs 344.47 crore with a balance debt of Rs 178.85 crore. The balance debt shall remain outstanding till the time the restructured debt is repaid.

In an interview with CNBC-TV18, Amit Dahanukar, CMD of Tilaknagar Industries said, “The company has made significant efforts towards reduction in both debt and the interest cost also have been coming down. I am quite confident that the year going forward also, we will be able to slash finance cost by close to 25 percent.”

Tilaknagar Industries distills, markets and distributes liquor across categories like whisky, brandy, rum, vodka, and gin.

Shares of the company were trading lower by 0.42 percent at Rs 106.45 apiece on BSE at 11.09 am on Monday.

(Edited by : C H Unnikrishnan)

First Published:Mar 20, 2023 1:37 PM IST