Central European Distribution Corporation Gets Approval from Creditors on Proposed Restructuring Plan
Central European Distribution Corporation (NASDAQ: CEDC) announced that CEDC and its U.S. subsidiaries, CEDC Finance Corporation International, Inc. and CEDC Finance Corporation LLC, have received overwhelming support from creditors for their proposed restructuring, which will be implemented through a Prepackaged Chapter 11 Plan of Reorganization. Accordingly, the Company today commenced voluntary proceedings under Chapter 11 of the U.S. Bankruptcy Code to seek confirmation of the Plan.
Separately, CEDC approved the terms of a new $100 million unsecured credit facility, to be provided by an affiliate of Alfa Bank, for the benefit of CEDC's Russian operations. The facility was arranged for CEDC by its strategic partner, Roust Trading Ltd. (RTL), which will pay the origination and other fees involved. CEDC welcomes the opportunity to enhance its relationship with one if its key financial partners – Alfa Bank.
The financial restructuring, which will eliminate approximately