April 8 Poland's Central European Distribution
Corp, seeking to reduce its debt load, has filed for a
pre-packaged bankruptcy that will give Russian businessman
Roustam Tariko full control of the vodka producer, a court
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
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 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
Holders of the existing 2016 notes which have claims
totalling $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 case is Central European Distribution Corp et al, Case
No. 13-10738, U.S. Bankruptcy Court, District of Delaware.