This morning, Mighty Craft announced a halt in share trading while the company undergoes a voluntary administration process in an attempt to restructure. This process, to be led by Liam Healey and Quentin Olde of specialist restructuring firm Ankura, aims to “evaluate options for the Company to continue as a going concern, or if this is not possible, that an administration will result in a better return for the creditors and members of the Company than would otherwise result from an immediate winding up of the Company.”
Prior to announcing the appointment of administrators, Mighty Craft had announced a temporary cessation of share trading, which will continue during the restructuring process.
“As shareholders are generally unable to transfer their shares during the administration of the Company, the Administrators will be requesting that all trading in the Company’s shares on the ASX remain suspended during the administration period,” read the announcement.
Recently, Mighty Craft has been working with senior debt provider PURE to try to increase the economic viability of the debt-riddled company. This includes eyeing off a merger deal with its best performing asset, Better Beer. In today’s announcement, a Mighty Craft spokesperson said “it now appears unlikely that an agreement will be reached between MCL’s senior lenders, Better Beer and Mighty Craft that is acceptable to all parties. The Directors therefore formed the opinion that the Company should be placed into voluntary administration to evaluate options.
“The Administrators have assumed control of the Company’s business and assets and will be undertaking an urgent assessment of the Company, working closely with Management and the Board during the administration period to determine the appropriate way forward to maximise the outcome for all stakeholders of the Company,” said a spokesperson to the ASX.
“In the meantime, the Administrators have confirmed that the operations of the Company and its subsidiaries will continue on a business-as-usual basis.”
This morning, Mighty Craft also announced that Sean Ebert had resigned from his position as a Director of the Board.
“Might Craft wishes to advise the market that Sean Eberrt has resigned from the Board effective 20 July 2024,” read the statement issued by Executive Chair Grant Peck. Grant Peck replaced Katie McNamara as Executive Chair on 1 July after McNamara stepped down from her position as Executive Chair and Managing Director the day prior in line with her fixed contract.
The ongoing economic struggle of Mighty Craft has led it to offload a large number of its existing assets. This includes its recent sale of Lot 100 on 12 July “for cash consideration of no less than $1.5 million,” which follows on from its sale of Mismatch Brewing and 78 Degrees Distillery for $7.2 million and previous sale of Jetty Road and Hills Cider. All of these have been purchased by a company headed by former Carlton & United Breweries CEO Peter Filipovic.
“The sale includes all of Lot 100’s business and assets, such as the leasehold for the Lot 100 cellar door venue in South Australia, branding, intellectual property, trading names, contracting arrangements, inventory, plant and equipment, and licences,” continued the announcement.
“Following completion, it is intended that the proceeds of the sale will be paid to MCL’s senior lenders and to fund the ongoing operations of the business.”
