The U.S. Bankruptcy Court approved Roust’s Disclosure Statement and concurrently issued an order confirming its Amended and Restated Joint Prepackaged Chapter 11 Plan. According to documents filed with the Court, “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.”
In addition, “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.”
This alcoholic beverage producer filed for Chapter 11 protection on December 30, 2016, listing $820 million in pre-petition assets. The Company was formerly known as Central European Distribution Corporation and emerged from a previous bankruptcy in May 2013.
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