Drinks giant Coca-Cola looks set to buy part of the Australian-owned company Billson's Brewery which was facing liquidation until it received a lifeline from creditors earlier this month. 

The company went into voluntary administration in July this year, owing more than $7 million to 142 unsecured creditors. 

The business is housed in a 159-year-old brewery in Beechworth in north-east Victoria. 

In a written statement, owners Nathan and Felicity Cowan, who started the company in 2017, said they were "thrilled" to have entered into agreement to see the Billson's brand and alcoholic line to Coca-Cola.

“We wholeheartedly believe that the brand is in the best possible hands for it to thrive long into the future,” Mr Cowan said

“This will allow us to dedicate ourselves to what we love most: the Beechworth venue experience and our historic cordial range,” Mrs Cowan said.  

The future of Billson's alcoholic line had been hinted at in a report by administrators McGrath Nicol.

They had been negotiating since October this year with "an unrelated confidential party" to potentially sell off the alcoholic component of the business.

The creditors report outlined three options for the company, including liquidation or a deed of company arrangement. 

Administrators recommended the latter as it offered the best return for creditors. 

Matthias Blume, Coca-Cola Vice President for the Asia Pacific, said the acquisition would allow the company to keep expanding the alcoholic ready-to-drink category in Australia. 

"Our Responsible Alcohol Marketing Policy determines how we responsibly go to market with alcohol brands." 

The company says it has no plans to expand Billson’s beyond Australia.

The acquisition is set to be completed at the end of January 2025 when Coca-Cola is expected to take ownership of the brands.