Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

Roust Chapter 11 Petition, Plan Filed

Roust (f/k/a Central European Distribution Corporation and CEDC) and two affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 16-23786. The Company, which operates primarily in the alcoholic beverage industry, is represented by Jay M. Goffman of Skadden, Arps, Slate, Meagher & Flom. Concurrent with its Chapter 11 petition, the Company also filed with the Court an Amended and Restated Joint Prepackaged Plan of Reorganization and related Disclosure Statement. The Disclosure Statement notes, "We believe that upon the successful completion of the transactions contemplated under the Plan of Reorganization, the reduction in Roust Corporation's indebtedness and the liquidity provided by the new equity capital will enable Roust Corporation to more effectively execute its business strategy and take advantage of growth opportunities worldwide to ensure that it is well positioned for an initial public offering of its stock within the next two to three years. The transactions under the Plan of Reorganization are expected to include the following: Holders of the Existing Senior Secured Notes will receive (i) the new senior secured notes due 2022 in an aggregate principal amount of $385 million and 10% coupon payable semi-annually, commencing on January 1, 2017, (ii) cash consideration of $20 million, (iii) a debt-to-equity conversion of the remaining balance of the Existing Senior Secured Notes (including all accrued and unpaid interest through and inclusive of the Petition Date) in exchange for 12.08% of the New Common Stock in the reorganized entity ('Reorganized Roust') subject to the Existing Senior Secured Notes Equity Subscription, and (iv) the right to participate in the Share Placement….Holders of the Existing Convertible Notes will receive (i) 10.59% of the equity of Reorganized Roust through a debt-to-equity conversion of the Existing Convertible Notes (including all accrued and unpaid interest through and inclusive of the date the Chapter 11 cases of the Debtors are filed under chapter 11 of the Bankruptcy Code in the Bankruptcy Court ('Chapter 11 Case'), (ii) 1.00% of the equity in Reorganized Roust pursuant to the Additional Convertible Notes Equity Allocation, (iii) the right to participate in the Share Placement, and (iv) the right to participate in the Existing Senior Secured Notes Equity Subscription." Central European Distribution emerged from a previous Chapter 11 filing in June 2013.

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