Amber Beverage Group has secured an extension of its debt moratorium, allowing the spirits business to continue talks with creditors.
In April, the spirits group opened “judicial reorganisation proceedings” after the District Court of Luxembourg granted it a moratorium on its debt obligations.
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An investor filing from Amber Beverage then said the moratorium was effective until 24 August but could also be extended.
In a filing today (28 August), the spirits company said the moratorium granted by the April judgement had been extended until 24 December.
The proceedings look to help Amber Beverage reach an “amicable” agreement with creditors or get approval for a formal regorganisation plan.
The filing also reiterated a line shared in the April filing: “The moratorium suspends, in respect of claims arising prior to the opening judgment, any enforcement measure, any protective or executory seizure, and the enforcement of the security and guarantees granted in favour of the noteholders.”
It added: “The company continues its active dialogue with creditors with the aim of developing and reaching agreement on a restructuring plan.”
Amber Beverage said the filing had no impact on business operations of the group’s subsidiaries, and that “operations continue as usual”.
The opening of the proceedings followed a formal event of default in February, set off by the failure of the company to repay bondholders in a required 20-business-day period.
The matter is linked to Amber Beverage’s Latvian business and main production unit, Amber Latvijas Balzams (ALB), which sought legal protection due to frozen accounts and liquidity shortages triggered by “external challenges”.
