Roust’s Amended and Restated Joint Chapter 11 Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on January 10, 2017.
BankruptcyData’s Plan Summary notes, “The Joint Prepackaged Plan of Reorganization and the Restructuring Support Agreement will strengthen Roust Corporation’s capitalization by over $500 million and deleverage its balance sheet by at least $462 million. In particular, the transactions under the Plan of Reorganization will result in the reduction of Roust Corporation’s existing funded debt by approximately $462 million, the receipt by Roust Corporation of funding of $55 million in new equity capital and the contribution of strategic assets, namely RSV and related intellectual property, to Roust Corporation by RTL and certain subsidiaries of it.”
A corporate release notes, “The Company’s new capital structure will provide immediately greater value to all stakeholders by positioning the Company for accelerated revenue and profit growth within the global alcohol market, thereby strengthening the Company’s position as the number 2 vodka company by volume worldwide, and the number 1 alcohol company in Central/Eastern Europe and Russia by volume. The successful completion of the transaction, the reduction in the Company’s indebtedness and the liquidity provided by the new equity capital, will enable the Company to more effectively execute its business strategy, take advantage of growth opportunities worldwide, to ensure that it is well positioned for an IPO within the next two to three years.”
This producer of alcoholic beverages filed for Chapter 11 protection on December 30, 2016, listing $820 million in pre-petition assets.
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