NORWAY: Isklar seeks investment as storm clouds gather

By Michelle Russell | 1 September 2011

Isklar sold a 50% stake in its business to India-based firm Siva Group for US$22m last March

Isklar has said it is seeking third-party investment after a court in Norway appointed an administrator to help restructure the bottled water group's debt.

The Norwegian bottled water firm has been granted a public debt restructure order through the District Court of Hardanger, Norway, the company said today (1 September). Through the restructure, the court will appoint an administrator to work with Isklar to assist in a debt restructuring process.

In March, Isklar sold a 50% stake in its business to India-based firm Siva Group for US$22m. The company is now managed by a 50-50 joint venture between its founder firm, Middle East-based SABCO Group, and Siva Group. SABCO hoped the deal would raise more investment for Isklar.

However, the firm said today that it will engage in a cost cutting process in a bid to reduce debt. This will involve cutting "all unnecessary costs across the business", as well as making "some staff redundancies".

"The board and management team are now actively seeking and currently engaging with interested third parties that can provide Isklar with the distribution and brand building support that the brand requires for continued success," Isklar said in a statement.

The firm said it remains confident of a positive outcome.

Sectors: Soft drinks, Water