Panache Beverage Inc. announced that it entered into a restructuring agreement and related transactions with its senior secured lender, Consilium Corporate Recovery Master Fund Ltd. and certain of the company's principal shareholders and former officers and directors. As part of this transaction, Consilium waived all existing defaults under the company's loan agreements, agreed to reduce the principal amount of indebtedness owed from approximately $6,922,212 to approximately $5,758,120 and reduced the interest rate on certain of its loans to the Company to 4% per annum until December 31, 2015, which interest shall be compounded, capitalized and added to the unpaid principal amount of the Company's loans quarterly. After December 31, 2015, these loans shall bear interest at 10% per annum.

In connection with these transactions, Consilium acquired an aggregate 16,629,876 shares from the Shareholders which had been pledged to Consilium under the Company's loan documents, and the Shareholders further agreed to the cancellation of an aggregate 1,200,000 warrants held by them in return for Consilium's termination of certain Pledge and Security Agreements with the Shareholders. The parties to the forgoing transactions also entered into customary release agreements. The cooperation of the three principals was critical not only to the future welfare of Panache but also enabled Consilium to leave the minority shareholders fully intact.