Summit Brewing Company announced Thursday that it reached an agreement with its lender and found a new lender, avoiding a foreclosure risk that was announced a month ago.
In a press release, Summit CEO and President Brandon Bland, said the loan previously held by BMO Bank has been acquired by a new lender. The lender was not identified in the announcement.
Bland said in the press release that the new lender is working with the brewery to execute a “recapitalization and long-term growth strategy aimed at strengthening Summit’s balance sheet and supporting its vision for the future.”
“Today is a day of gratitude and genuine excitement for all of us at Summit,” said Bland, in the press release. “That starts with our employees, who have shown up every day through months of uncertainty. Their professionalism has inspired all of us to keep pushing toward a resolution, and I can’t thank them enough.”
Summit’s brewery, taproom and operations will continue as usual. The company does not anticipate any changes to supply.
BMO Bank filed a lawsuit in September to collect more than $8 million worth of unpaid debt.
In a lawsuit filing, BMO Bank alleged Summit Brewing Company missed a loan payment deadline at the end of last year. The bank then agreed to a forbearance timeframe until July 31. The court filings indicated that Summit informed the bank it didn’t have the ability to repay the loan.
Collected from Minnesota Public Radio News. View original source here.
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