CEDC racked up big debts in the previous decade

CEDC racked up big debts in the previous decade

Russian Standard owner Roustam Tariko will take sole control of Central European Distribution Corporation (CEDC) this week when a restructuring plan goes into effect.

CEDC, which filed for bankruptcy last month, will cancel its shares on the Warsaw Stock Exchange by Wednesday (5 June) and hand all outstanding stock to Tariko's Roust Trading, the company said late last week. In return, Tariko will fund cash payments to CEDC bondholders and write off the company's debts to Roust.

Bondholders will receive between 35-84% of their investments, while shareholders will receive nothing, a CEDC spokesperson told just-drinks.

The restructuring plan is expected to clear about US$665m of debt from CEDC, which has never recovered from high spending incurred through the acquisition of three Russian spirits companies in 2008. It follows CEDC's delisting from the NASDAQ stock market in April.

On Friday, CEDC also announced Alfa Bank has resumed lending to the company and has granted access to RUB1bn (US$30m).