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Restructuring of Bond Corp. won't help G. Heileman, analysts believe.

Restructuring of Bond Corp. won't help G. Heileman, analysts believe

G. Heileman Brewing Co., Australian entrepreneur Alan Bond's best-known U.S. business, has serious financial problems that a reorganization of its parent won't help, analysts say.

Bond agreed to resign as chairman of his Bond Corp. Holdings Ltd. to appease creditors, under an agreement announced last week.

The resignation was part of a plan for refinancing arrangements, company director Peter Lucas said in disclosing the pact after a bondholders meeting in London.

Heileman officials said Bond's financial problems do not affect Heileman directly because the brewer has its own loan arrangements, currently being renegotiated with creditors.

Bond Corp. Holdings' Australian brewery assets will be sold for about $1.4 billion to Bell Resources, an independently managed affiliate of Bond Corp. Holdings. Heileman would not be included in the sale, Lucas said.

"Bell Resources has felt that the maximum capacity in the brewing industry that it could undertake ought to be restricted to the Australian assets at this time," he said. "It (Heileman) is going to remain with Bond Corporation."

New leadership at Bond Holdings won't help Heileman with its own debts, said George Thompson, a Prudential-Bache analyst.

"There's nothing I can think of that is going to solve the problem at G. Heileman," Thompson said. "No matter who it was, they're confronted with an extraordinarily difficult task and a change of management is not going to make a difference."

The La Crosse, WI-based company has been strapped by debt created when Bond bought the company in 1987 for $1.3 billion.

Robert Weinberg, a St. Louis marketing consultant, said Bond's resignation and his company's restructuring may have an indirect impact on Heileman.

"If it has any impact, the Bond Company's reorganization would spur a reorganization of Heileman's assets," he said.
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Title Annotation:Bond Corporation Holdings Ltd., G. Heileman Brewing Co.
Publication:Modern Brewery Age
Date:Jul 30, 1990
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