Cains: More Details EmergingPosted: October 16, 2008
Unsurprisingly the Dusanj brothers are still resolutely refusing to make public comments about the recent collapse and buy-back of Cain’s. But Alex Turner of the Daily Post has been examining information from the administrators and revealed yesterday that a whopping £25 million is unlikely to be repaid to unsecured creditors of the Cains Beer Company. Those creditors include several local councils, including Liverpool City Council, Sefton, Knowsley and others. As the banking crisis spreads that’s going to be an increasingly familiar story, but what is striking about this is the revelation that the brothers bought back the company for as little as £103,750. They lost millions when the company failed of course, but the buy-back figure does show how little the company was worth without control of the brewery and city centre pubs, which were already owned by the Dusanj family:
A report by administrators PricewaterhouseCoopers has detailed the trail of creditors.
The Bank of Scotland was owed £28m, although it did have charges registered over more than 100 properties. The large debt was a result of the bank supporting Cains’ £37m reverse takeover of Honeycombe Leisure in 2007, which saw it acquire 92 pubs.
Trade creditors were owed nearly £8m, with pub landlords Punch and Nectar among the worst hit. Between them, they owned 48 of the 76 pubs leased by Cains and were owed £509,000 and £100,000 respectively.
Here’s the link to the story.