Sun Brewing

FINANCIAL

 MANAGEMENT

Case:

SUN

 BREWING

 (A)

 &

 (B)

Group

 4:

Anagel

 Liao-­‐M10218003

Tiffy

 Huang-­‐M10218014

Wendy

 Wen-­‐M10218019

Ta

 Van

 Thanh-­‐M10221803

Durand

 Florian-­‐E10221004

Bonnefoy

 Laurent-­‐E10221005

S U N

  B R E W I N G

  A

Question

 1:

 What

 situation

 was

 Khemka

 family

 involved

 in

 during

 the

 case?

 What

other

 options

 could

 they

 choose

 originally?

In

  August

  1998,

  the

  Russian

  economy

  collapse.

  With

  the

  country

  defaulting

  on

  public

and

 private

 debt,

 and

 a

 massive

 devaluation

 of

 the

 rouble,

 the

 drop

 in

 traded

 equity

 in

Russian

  companies

  was

  precipitous.

  SUN

  Brewing’s

  stock

  price,

  which

  had

  reached

  an

all-­‐time

  high

  of

  $19.5

  in

  March,

  plummeted

  to

  $1.75

  on

  September

  22,

  and

  the

  stock

price

  still

  remained

  well

  under

  $3.00

  by

  March

  1999.

  SUN

  Brewing

  was

  forced

  to

  cancel

its

 intended

 NYSE

 offerings,

 and

 they

 still

 have

 a

 $40

 million

 bridge

 loan

 that

 needed

 to

be

  repaid

  right

  away.

  In

  early

  1999,

  apart

  from

  the

  severe

  impact

  of

  the

  Russian

financial

 crisis,

 Baltika

 had

 overtaken

 Sun

 Brewing

 as

 the...