Pursuits
Vodka Maker CEDC Touts Bond-Equity Swap to Reduce Debt
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Central European Distribution Corp., the Polish vodka distiller rescued by Russian billionaire Roustam Tariko last year, proposed swapping bonds for equity to cut its debt by more than $750 million.
The company, which made a deal in December to get as much as $107 million in new capital from Tariko five months after he bought its debt, extended the offer to bondholders yesterday after convertible notes due next month sank and its stock plunged as much as 65 percent in New York. CEDC, maker of the Zubrowka and Parliament vodka brands, said it’s also considering a pre-packaged bankruptcy plan in Delaware, according to a filing yesterday.