Support The Moscow Times!

Tariko Getting Control Over CEDC

Moscow bartenders will still be mixing drinks with Parliament vodka if thanks to an organized bankruptcy deal. Vladimir Filonov

Poland's Central European Distribution Corp, seeking to reduce its debt load, has filed for pre-packaged bankruptcy that will give Russian businessman Roustam Tariko full control of the vodka producer, a court filing showed.

CEDC, which makes Absolwent and Parliament vodka and is a market leader in Russia, Hungary and Poland, has struggled with financial problems and the resignation of its chief executive.

A spat with Tariko ended last December when it ceded operational control to him in exchange for up to $65 million in funding.

The Chapter 11 restructuring plan, which was approved by the company's creditors, will slash about $665.2 million in debt from the company's balance sheet.

The filing showed that CEDC had liabilities of $1.74 billion and assets of $1.98 billion.

If Delaware's bankruptcy court approves the plan, Tariko's Roust Trading will end up owning 100 percent of the company's outstanding stock.

Holders of the existing 2016 notes which have claims totaling $982.2 million, will receive $822 million, consisting of $172 million in cash, $450 million in new secured notes and $200 million in new convertible notes.

Holders of 2013 notes who participate in the plan, will receive about $55 million, comprised of $25 million in cash and $30 million in secured notes issued by Roust Trading, resulting in an estimated recovery of 35.4 percent.

In a prepackaged bankruptcy, management negotiates the general terms of a bankruptcy plan with major creditors prior to the filing.

Related articles:

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more