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Investor withdraws from restructuring bid for vodka company CEDC
March 28, 2013 / 1:40 PM / 5 years ago

Investor withdraws from restructuring bid for vodka company CEDC

March 28 (Reuters) - A major investor in Central European Distribution Corp, one of the world’s largest vodka producers, has withdrawn from a consortium that had proposed acquiring the company through a restructuring proposal.

Mark Kaufman, who is among CEDC’s largest stockholders, said in a statement he withdrew from a consortium that included A1, a unit of Russia’s Alfa Group, and SPI Group, which owns Stolichnaya Vodka.

CEDC’s board has backed a rival restructuring plan which includes a bond exchange offer from Roust Trading Ltd, a company owned by CEDC’s chairman.

Kaufman does not intend to support the current Roust Trading restructuring proposal, according to Cyril Benoit, a Kaufman spokesman. “Mark is concerned that the bidding war does not necessarily reflect the true value of the company,” Benoit said.

CEDC has said it intends to file for bankruptcy if its bond exchange offer fails. The company recently missed a payment on $258 million of notes that matured on March 15.

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