According to a recent statement from the Central European Distribution Corporation, the creditors of the vodka maker are said to be supportive of the company's restructuring plan. The restructuring is to be done under a prepackaged Chapter 11 plan.
Recently, CEDC sought bankruptcy protection under Chapter 11 voluntarily as a result of its financial issues. Included in the prepackaged Chapter 11 bankruptcy plan is a US$100 unsecured credit facility to support its Russian operations from Alfa Bank. This was finalized by CEDC's partner for Russia Roust Trading Ltd.
Overall, CEDC reasurred its investors that the financial restructuring should have no impact on its operations in Poland and other areas. This would eliminate about US$652.5 million in debt from CEDC's balance sheets only as the operating subsidies in Hungary, Poland, Russia or Ukraine run independently of CEDC. Also included in the plan is the payment of all obligations to employees, vendors, credit providers and government agencies.
Join the Conversation