(Bloomberg) — City Brewing Co., which makes alcoholic drinks such as White Claw and Pabst Blue Ribbon, is talking to creditors about inking an out-of-court restructuring with lenders taking control of the company, according to people with knowledge of the matter. Negotiations are ongoing and no final decision has been made, said the people, who asked not to be identified discussing a private matter. Discussions with creditors ramped up late last year, as City Brewing, whose investors include Charlesbank Capital Partners and Oaktree Capital Management, looked to shore up its cash reserves amid weakening demand, Bloomberg previously reported. A representative for City Brewing didn’t immediately respond to a request for comment, while representatives for Charlesbank and Oaktree declined to comment. The La Crosse, Wisconsin-based brewer in January moved intellectual property tied to nine brands plus the equity interest in real estate located in Irwindale, California, into a newly created entity, according to a Moody’s Ratings report at the time downgrading the company’s credit score. It then used those assets to raise a $107 million super-priority term loan, Moody’s said. Moody’s cited increased leverage, the likelihood the company would have negative cash flow in the next two years and issues onboarding Pabst’s production at City Brewing that led to contract changes as reason for the downgrade to Caa3, deeper into junk. The move marked the second time in less than a year that the brewing company has reworked its debt stack. Last April, City Brewing overhauled its capital structure, which allowed it to shuffle assets into a newly formed legal entity and borrow $115 million against that collateral, Bloomberg previously reported. That deal also revamped the creditor hierarchy and called for below-par debt exchanges. A consortium of investors including Charlesbank bought City Brewing in 2021. Oaktree and Blue Ribbon Partners were also listed as investors, according to a statement at the time. The company is working with Evercore Inc. and Sullivan & Cromwell, while the group of negotiating lenders retained Perella Weinberg Partners and Gibson Dunn & Crutcher for advice, Bloomberg has reported. More stories like this are available on bloomberg.com ©2025 Bloomberg L.P.
City Brewing, the maker of Pabst, is considering a takeover by lenders as part of a restructuring effort.
