The world’s second largest manufacturer of vodka has declared bankruptcy

Alcohol holding company of Russian businessman Roustam Tariko, Roust Corporation appealed to the court of new York asking for protection from creditors in accordance with article 11 of the Code of bankruptcy laws of the United States.

As the saying in the card Roust Corp. on the website Bloomberg and data PacerMonitor, the relevant application was lodged on 30 December 2016.

As specified in the publication Law360 from 3 January 2017, the Corporation in the case intends to restructure debt totaling $1.14 billion As the head Roust Grand Winterton, difficulties with the payment of the debt was incurred including due to the economic downturn in Poland, Russia, Kazakhstan and Ukraine, as well as difficulties with financing in the Russian banks and a ban on deliveries of Russian products in Ukraine (the business Corporation in this country has been reduced by 90%).

The Winterton noted that during negotiations with creditors Roust managed to negotiate the restructuring of 90% of the loans and about two-thirds of convertible bonds. The head Roust pointed out that «the positive development Corporation has been overshadowed by macroeconomic factors.»

On the evening of 9 January, the press service of Roust said that the new York court approved a program of debt restructuring and recapitalization group, reports «Prime». «At the moment, there is paperwork according to the court decision», – noted in the holding.

Roust Corporation, according to its own data, is the second largest vodka producer in the world and the largest distributor of alcohol in Central and Eastern Europe. Among the alcohol brands of the holding, among others, — «Green mark» Parliament, «Cranes», and Zubrowka.

Previously all of the brands belonged to the Polish Central European Distribution Corporation (CEDC), which was purchased by the holding Tariq in mid-2013. Shortly before the transaction, CEDC also asked for protection from creditors in a us court, and then agreed to restructure the debt, which exceeded $1 billion.

Vodka brand «Russian standard» also owned by Tariko, Roust Corporation is not included. In November 2016, the newspaper «Vedomosti» reported that the businessman may hold an IPO (initial public offering) Roust in the next two years after the integration of «Russian standard» holding. This integration will occur within the Roust of debt restructuring and recapitalization of the Corporation more than $500 million.

The world’s second largest manufacturer of vodka has declared bankruptcy 10.01.2017

Январь 10th, 2017 by
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