Tilaknagar Industries Ltd., the makers of the Mansion House Brandy, on Friday announced that it has pre-paid fully restructured debt of Rs 176.22 crore of Edelweiss Asset Reconstruction Company (EARC) acting as trustee of EARC Trust SC 241.

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Following the prepayment, the corresponding balance debt of Rs 3.62 crore of EARC Trust SC 241 has been waived by Edelweiss ARC and the same will be written back by the company, Tilaknagar Industries said in a stock exchange filing.

Post this pre-payment, the total restructured debt of Rs 176.22 crore as of June 30, 2023 is now reduced to Nil.

The prepayment of the EARC debt has been financed through internal accruals and a debt of Rs 130 crore from Kotak Mahindra Bank Ltd, the spirits maker and distributor said.

Tilaknagar Industries, in February 2020, had entered into a long-term agreement with EARC for the restructuring of loans worth Rs 523.32 crore owed to some of the banks and a financial institution.

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

The total debt of Rs 523.32 crores was restructured by EARC at Rs 344.47 crore with a Balance Debt of Rs 178.85 crore.

The company on Friday mentioned that it has now fully repaid the restructured debt of all three EARC Trusts as per the Master Restructuring Agreement (MRA) of February 6, 2020.

The company, in March 2023, had also announced prepayment of outstanding debt along with accrued interest of Rs 54.1 crore of EARC with respect to two restructured loan facilities.

Tilaknagar Industries manufactures, markets and distributes spirits that include whisky, brandy, rum, vodka, and gin.

Shares of Tilaknagar Industries are trading 0.4 percent lower at Rs 193.