Bira 91 Founder Ankur Jain Steps Down After Settlement
Ankur Jain has resigned from Bira 91's board and executive roles following a settlement with investors and lenders.Summary
Bira 91 founder Ankur Jain has stepped down from all executive roles and the board of B9 Beverages after reaching a settlement with lenders and investors. As part of the agreement, Jain and his family surrendered their 17.8% stake in exchange for being released from personal loan guarantees. Both parties have agreed to withdraw all legal claims against each other.
The company's crisis was triggered by a name change during IPO preparations, which caused regulatory delays and forced the company to write off Rs 80 crore in inventory. This, combined with high operational costs and falling sales, led to significant financial losses, with B9 Beverages reporting a net loss of Rs 748 crore in FY24 and total debt nearing Rs 1,000 crore.
The financial strain resulted in severe employee issues, including unpaid dues for over 500 staff members and significant workforce reductions. Following disputes with major investors like Kirin Holdings and Peak XV Partners, the settlement aims to recapitalize the company, clear outstanding debts, and restart operations under new management within the next three to six months.
(Sourceļ¼Bharat Fast)