Alan Bond’s Debt Crisis Worsens as Shares Decline

Alan Bond’s debt crisis intensified Thursday as shares of a subsidiary hit a record low, and it was reported that bankers are becoming increasingly restive about their massive loans to his brewing and media empire.

Growing uncertainty about his company’s plans to solve its problems by selling a half-share in its Australian breweries pushed shares in his Bell Resources Ltd. to an all-time low.

Bond himself refused to comment on reports that Kerry Packer, billionaire businessman, was planning to regain control of the television network he sold Bond in 1987.

“Anyone in their right minds wouldn’t have touched Bond (Group) shares for months now,” one broker said.

He blamed the fall in shares of Bell Resources, which is controlled by Bond Corp. Holdings Ltd., on the belief that the $2-billion ($2.5-billion Australian) plan to sell the brewing assets into a joint venture had little chance of success.

Bell Resources shares closed down 14 cents at 52 cents, after touching a record low of 50 Australian cents (40 cents U.S.).

“Bell Resources is looking pretty crook (sick),” said another broker. “There’s doubt about the brewing deal, and now it looks as though the banks are also hovering.”

A third broker defended Bond, saying, “If he can keep his head above water and bring about asset sales, he can still go on.” But he said concern from bankers seemed to be mounting.

Spokesmen for National Australia Bank Ltd. and Hong Kong Bank of Australia Ltd. confirmed that they and other banks involved in a $686-million ($880-million Australian) loan to Bond’s Australian brewing group met with Bond Corp. representatives in Melbourne Wednesday to discuss the loan.

But both banks refused to comment on reports that lenders to the brewing group were becoming increasingly concerned about their loans.