CEDC Slumps as Vodka Producer Files for U.S. BankruptcyPiotr Bujnicki
Central European Distribution Corp., Poland’s second-biggest vodka producer, slumped to a record low after filing for U.S. bankruptcy protection.
CEDC, as the Warsaw-based company is known, sent a bankruptcy petition with a pre-approved restructuring plan aimed at cutting $665.2 million in liabilities, it said in a statement yesterday. The spirits maker took on debt to finance takeovers in Russia and then faced falling revenues and management shifts.
The shares plunged 41 percent to 19 cents, the lowest price since the company started trading in New York in 1998.
“The company may now conduct the restructuring but its shareholders are ending up with nothing or almost nothing,” after filing for bankruptcy, Jakub Krawczyk, an analyst at Raiffeisen Centrobank AG in Vienna, said by e-mail today.
Once the bankruptcy is confirmed, the restructuring will result in Roust Trading, controlled Roustam Tariko, a Russian billionaire and CEDC Chairman, owning 100 percent of the outstanding stock of the reorganized company, the distiller said in a statement yesterday.