MOSCOW, Mar 29 (PRIME) -- Russian investment companyA1 has recalled its offer to restructure the debts of Polish vodka maker CEDC, leaving businessman Rustam Tariko the only remaining contender to rescue the firm, a source with knowledge of the situation told PRIME late on Thursday.
CEDC had to repay U.S. $257.9 million worth of unsecured bonds on March 15, but the company informed creditors that it has no money and postponed making a decision on the restructuring of its debt to April 4. CEDC’s total debt stands at $1.2 billion, of which $957 million are in the form of secured bonds maturing in 2016.
The bond holders suggested raising A1’s investments by $50 million to $330 million in exchange for a 100% stake in CEDC.
“This factor makes participating in restructuring senseless. The ceaseless boosting of payments destroys the benefit of investment,” the source said.
Tariko’s Roust Trading Ltd (RTL) offered to pay $172 million in cash to the holders of bonds maturing in 2016 and change the rest for $650 million bonds maturing in 2018. Tariko would then drive his stake in CEDC to over 95%, compared with his current 19.5%.
The source said that Tariko and A1 had agreed that the latter would withdraw his candidacy, so as to prevent a hike in the proposed investments.
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