Vodka seller Central European Distribution Corp., headed by Russian billionaire Roustam Tariko, filed for U.S. bankruptcy protection amid heavy bond debt and with a pre-approved restructuring plan aimed at cutting about $665.2 million in liabilities, Bloomberg News reported yesterday. The company claimed $1.98 billion in assets and $1.73 billion in debt in court filings on Saturday. CEDC said in February that it had proposed a debt-for- equity plan to reduce liabilities by more than $750 million. The company's immediate financial crisis involved $257.9 million in 3 percent convertible notes that matured March 15. The company said yesterday in a statement that holders of existing 2016 notes will receive $822 million, consisting of $172 million in cash, $450 million in new secured notes and $200 million in new convertible notes—an estimated recovery of about 83.7 percent.
