Vijay Mallya-led United Breweries group firm - Kingfisher Beer Europe (KBEL), subsidiary of United Breweries International has signed a loan agreement for ? 1 million with Heineken UK along with a brewing pact. As per this agreement, if the Indian partner defaulted in payment the Dutch firm will gain rights to produce and sell Kingfisher beer in the UK for five years.
According to this agreement Heineken agreed to provide KBEL with a secured term loan facility of £10,00,000 to be made available on October 9, 2013 and to be repaid in full by October 9, 2016. Other than this, in exchange for royalty payments to KBEL, Heineken will receive the right to the sole and exclusive reseller of the product to certain customers.
