ABCC Repayment Options for Alcohol Debt

By Massachusetts Restaurant Association June 19, 2020

ABCC Order Addressing Repayment of Covid Related Alcohol Debt

The MRA, the Beer Distributors of Massachusetts and the Wine & Spirits Wholesalers of Massachusetts collectively announce a plan to address outstanding alcohol debt and the 60-day delinquency reporting period as it is relates to the Covid-19 Pandemic

In light of the continuing impact of the COVID-19 pandemic, the Alcoholic Beverages Control Commission recognizes the ongoing hardship posed to § 12 licensees to comply with the 60-day delinquency reporting period as outlined in M.G.L. c. 138, § 25 (Credit Terms) for unpaid invoices.

The ABCC has issued the following  order   providing relief from being reported and posted as delinquent under § 25 for invoices issued on or after January 18, 2020 and before April 16, 2020 (“eligible invoices”).

In order to benefit from this Order:
  • Every § 12 licensee must pay in full all eligible invoices in twelve (12) equal monthly installments. 
  • The first payment shall be due on the first of the month that occurs forty-five (45) days following the date the Governor removes the ban on inside service by § 12 licensees selling for on-premises consumption. 
  • Payments shall be due thereafter on the first of each month, starting on September 1, 2020. 
  • Every § 12 licensee who owes unpaid eligible invoices must be reported by the seller as delinquent pursuant to M.G.L. c. 138, § 25, on September 4, 2020, unless the licensee complies with this Order. 
  • If a licensee fails to make timely monthly payments on their eligible invoices, then the wholesaler to whom such payment was not made shall place the licensee on the delinquent list for the missed payment within three (3) days of the licensee’s failure to make such monthly payment. 
  • If a licensee subsequently pays any overdue eligible invoice(s) it shall be removed from the delinquency list for those eligible invoices forthwith. 
  • Any § 12 licensee that cannot open until Phase 4 of the Governor’s Plan for the reopening of the Massachusetts economy must pay in full all eligible invoices in twelve (12) equal monthly installments beginning October 1, 2020, whether it is permitted to open by that date or not. 
  • Any credits given for returns of empty containers or for returns of any alcoholic beverages for invoices issued on or after January 18, 2020, and before April 16, 2020, must be applied by the seller to pay down the unpaid total of eligible invoices and these credits may be applied by the seller to the oldest invoice to reduce the total owed for all eligible invoices. 
  • The Order does not apply to § 12 licensees already posted on the credit delinquency list as of March 19, 2020. 
  • Licensees who meet the criteria of this Order do not need to apply to the Commission for this extension of credit terms as these terms apply automatically. 
  • Licensees who do not meet the criteria are reminded that they may still apply to the Commission for relief.