CEDC Responds to Letter From Russian Standard Corporation; Says in Process of Reviewing Proposal
The Board of Directors of Central European Distribution Corporation (Nasdaq: CEDC) responded today to the letter from R.V. Tariko of Russian Standard Corporation, dated February 1, 2012 and filed as Exhibit 99.4 to the Schedule 13D/A filed by Russian Standard on February 2, 2012, proposing a "strategic alliance" whereby, among other things, Russian Standard would seek to convert a portion of its 2013 Senior Convertible Notes in exchange for common stock of the Company, obtain certain minority rights and board seats, possibly extend a backstop credit facility to the Company and possibly sell certain distribution and other rights to the Company.
The Board stated that, in accordance with its fiduciary duties and with the assistance of financial and legal advisors, it is currently in the process of reviewing the proposal put forward by Russian Standard. The Board further stated that there can be no assurance of any transaction as a result of its review of the Russian Standard proposal and it does not intend to discuss or provide interim updates regarding this process.
CEDC is one of the largest producers of vodka in the world and Central and Eastern Europe's largest integrated spirit beverage business. CEDC produces the Green Mark, Absolwent, Zubrowka, Bols, Parliament, Zhuravli, Royal and Soplica brands, among others. CEDC currently exports its products to many markets around the world, including the United States, England, France, Japan and Germany.
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