CEDC rejects latest restructuring offer in favor of Tariko's plan, shares soar 20%
MOSCOW. March 21 (Interfax) - Central European Distribution Corporation's (CEDC) share price shot up more than 20% Wednesday after the troubled Polish vodka maker announced the latest news on a debt restructuring.
CEDC's shares, which plunged 20.5% a day earlier, were up more than 22% on Nasdaq at about 7:30 p.m. Moscow time, though they latter corrected. They were up 16% at $0.325 at 8:57 p.m. Moscow time.
CEDC reported Wednesday that its board of directors had considered a revised plan for restructuring the company's debt proposed by a "third party," but decided that it is inferior to a plan proposed by Roust Trading and backed the latter. Roust Trading is a division of Russian billionaire Rustam Tariko's Russian Standard Group.
CEDC, which is on the verge of bankruptcy due to its large debt, has received several offers from current shareholders and potential investors. In addition to Roust Trading, the investment arm of Russia's Alfa Group, A1 has proposed a restructuring plan in an alliance with CEDC shareholder Mark Kaufman.
