Inside the plant at Walkerswood in St Ann, July 23, 2006. - File

The rescue syndicate for the Walkerswood Partners Limited has got the court's approval on the offer to be made to creditors of the indebted company, clearing away for consumation of the takeover deal.

Creditors have been offered 25 cents on the dollar. At lockdown, Walkerswood owed $1.2 billion.

But the consortium, though it secured the Supreme Court's nod back on May 14, is still tidying up the deal that will give them 90 per cent of Walkerswood.

The parties retaining the other 10 per cent have not been disclosed by the parties.

Rescue syndicate

The rescue syndicate, comprising Associate Manufacturers Limited (AML), Pan Jamaican Investment Trust, and a group led by businessman Howard Mitchell, has got the green light from the court to pump capital into put the spice company, which has been mothbolled since last year.

"That cleared the way for the rescue syndicate to proceed to completion by investing up to US$5 million in Walkerswood Partners in order to pay off the reduced debts and to recapitalise the company," said a lawyer representing the consortium.

"The syndicate has reached an agreement with Ex-Im Bank but there are still a few loose ends to be tied up and these will be attended to in the course of this week."

Larger stake

AML, which is expected to end up with the larger stake in the consortium and is to be a managing partner, has said the plan is to integrate Walkerswood into its operation.

AML, whose principals include Ian Garbutt and Christopher Bowman, already manufacturers spices, including the popular Busha Browne range.

The Busha Browne spices are produced under licence from the Facey family-controlled Pan Jam, which owns the brand.

Pan Jam, which will have a 25 per cent interest in Walkerswood, is also to have a management role of the rescued company, but the parties were unwilling to specify the arrangements ahead of a public announcement to be made about the deal.

sabrina.gordon@gleanerjm.com