Bankruptcy court to consider CEDC's reorganization plan May 13
MOSCOW. April 10 (Interfax) - The Delaware Bankruptcy Court in the U.S. has scheduled a hearing to consider the confirmation of Central European Distribution Corporation's (CEDC) prepackaged reorganization plan for May 13, CEDC said in a press release.
Roust Trading Ltd., which represents the interests of CEDC's largest co-owner Roustam Tariko, has informed CEDC that Roust Trading intends to make an aggregate $5 million payment to all existing stockholders in CEDC, including Roust Trading, as of April 5, if the plan is confirmed by the Delaware Bankruptcy Court, the press release said.
CEDC is one of the leading producers and distributors of vodka in Poland, where it owns the brands Zubrowka, Bols and Soplica. The company is also among the leaders on the Russian vodka market, where it produces the brands Zhuravli, Parlament and Zelenaya Marka.
At the beginning of April, CEDC, which found itself unable to cope with its debt burden, filed for voluntary bankruptcy in the U.S.
CEDC received approval from the majority of its creditors for restructuring. Approximately 95% of all existing 2013 and 2016 notes were voted, and of those, 99% in number and 97% in amount voted to accept the plan.
By restructuring, CEDC's balance sheet will be freed from $665.2 million worth of liabilities. If confirmed, the restructuring will result in Roust Trading owning 100% of the outstanding stock of reorganized CEDC. Holders of existing 2016 notes will receive total consideration of $822 million, consisting of $172 million in cash, $450 million in new secured notes and $200 million in new convertible notes, on account of their claims totaling approximately $982.2 million in U.S. dollars. This consideration will afford holders of existing 2016 notes an estimated recovery of approximately 83.7%.
Holders of existing 2013 notes other than Roust Trading who participate in a separate offer by Roust Trading will receive total consideration of $55 million, composed of $25 million in cash and $30 million in Roust Trading Notes, which collectively will afford such holders an estimated recovery of 34.9%.
Separately, CEDC has approved the terms of a new $100 million unsecured credit facility, with a one year term and option for extension, to be provided by an affiliate of Alfa Group, for the benefit of CEDC's Russian operations. The facility was arranged for CEDC by its strategic partner, Roust Trading Ltd. (RTL), which will pay the origination and other fees involved.