Bond’s Financial Empire Teeters on Brink

Australian entrepreneur Alan Bond, who captured the America’s Cup seven years ago, is fighting to prevent the collapse of his financially troubled brewing and media empire, which is more than $5 billion in debt.

If the Bond empire collapses, it would be the biggest failure in Australian corporate history.

As creditors demand that the company make delinquent payments, Bond Corp. Holdings Ltd., is waging a legal battle to unseat a court-appointed receiver and manager of its Australian brewing operations. The cash strapped Bond Corp. is Australia’s second-largest beer maker. It moved into the U.S. beer market three years ago and has interests in G. Heileman Brewing Co. and Pittsburgh Brewing Co.

Losing control of the brewing interests is the company’s most worrisome problem because it could trigger the default of other existing loans and cause other creditors to protect their loans. That, in turn, could bring the house of Bond down, according to company officials. Already, a group of U.S. investors, who recently failed to receive a $32 million interest payment from Bond Corp., is demanding immediate repayment of a $510 million in debentures issued by the Australian brewery.