Cobra Beer founder on course to meet repayment obligations
A file photo of Lord Bilimoria attending a ceremony to honor Brahmrishi Shree Kumar Swamiji at House of Commons on November 15, 2011 in London, England. (Photo by Stuart Wilson/Getty Images for His Holiness Brahmrishi Shree Kumar Swamiji)
COBRA Beer founder Lord Karan Bilimoria’s dividend from his lager business went down last year due to the pandemic but it still enables him to honour his commitment to repay his creditors.
His share of the dividend from the Cobra Beer Partnership stood at £3 million in 2020, down from £4.2m he received a year earlier as the lockdown disrupted the alcohol business.
When Cobra Beer collapsed in 2009, some 20 years after he founded the company in Fulham, the peer owed £70m to his 340 creditors.
However, the Hyderabad-born British Indian entrepreneur struck a pre-pack deal with Molson Coors to revive the business and formed the joint venture, Cobra Beer Partnership, with the American brewer.
He promised his creditors to repay his debts from his share of dividends. The 10-year collaboration which he heads as the chairman was extended in 2019.
Last year, the turnover of the joint venture nosedived 33.2 per cent year-on-year to £35.7m amid the pandemic disruption, particularly in India and Bangladesh.
Lord Bilimoria’s spokesperson said the president of the Confederation of British Industry would continue to honour his debt repayment obligations.
“As before, the vast majority of the dividends has been used to settle creditors and over the remaining years of the joint venture, Lord Bilimoria plans to continue to settle remaining creditors from his share of the dividends,” the spokesperson told The Times.