Irish drinks conglomerate C&C Group has agreed a schedule to repay HMRC and three banks which lent money to Matthew Clark Bibendum, a former subsidiary of Conviviality acquired by the group in April.

In its full year results investor presentation the company announced it had agreed a payment schedule with HMRC to pay £36m in overdue excise duty and VAT, as well as paying £102m to three bank creditors over the next 12 months.

The company also said it had negotiated normal credit terms with 75% of suppliers and was in ongoing discussions with credit insurers.

C&C Group also noted in its results that Matthew Clark Bibendum had been under financial stress before the acquisition with stock and services significantly below normal. Stock totalled £56.3m, trade and other receivables was £184.9m and trade and other payables were £247.1m.

However, as a result of the work by staff from both companies, the business is starting to normalise. C&C Group has appointed David Phillips as managing director of Matthew Clark Bibendum, he was a finance manager between 2007 and 2015.

C&C Group CEO Stephen Glansey said: “Matthew Clark Bibendum, is the largest independent distributor to the UK on-trade. With unparalleled on-trade market access, a wide range of supplier relationships, and supported by a skilled and loyal employee base, this is a business we know well. A strategically important acquisition for C&C, this greatly enhances our route-to-market in the UK on-trade.

“Significant progress has already been made in stabilising the business. We look forward to working with our new colleagues in restoring the Group’s position as one of the leading and most respected drinks suppliers in the UK hospitality sector.”

The company will provide more detailed information on Matthew Clark Bibendum’s trading and prospects at the half year trading update in September 2018.