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Thnx. I like the full stochastics. Check it tells the pattern here
Always. That's why we crack this nut here to make money
intresting 1 thing is 4 sure they are trying to screw the lil guy
Ya that was last weeks news. Smells good to me though
When it breaks .028 yesterday's high, will likely explode
smells bad(like a pending lawsuit ) read this article ,
he Curious Case of the European Vodka Seller
American Airlines leaves Chapter 11, as it is soon expected to do, the number of pending big cases will be … well, can you think of one?
Sure, litigation lingers from the General Motors and Lehman Brothers cases. But that’s not really surprising. The big case of the 1970s – Penn Central – had litigation that lasted into the 1990s. So that’s not really restructuring, it’s more like litigation about restructuring.
When I find myself poking into the Oreck Chapter 11 case, with its $11 million debtor-in-possession loan, we know things are slow.
Still, there are some interesting developments, perhaps none quite so fascinating as the super-speedy Central European Distribution Corporation prepackaged case.
The debtor, a vodka maker, is essentially an entirely foreign operation, save for a small office in New Jersey. All its operating companies are in Poland, Russia, Ukraine and Hungary.
So, naturally the company filed its Chapter 11 case in Delaware.
How? State of incorporation, of course. All well-advised distressed companies, wherever located around the globe, should make sure that they have a Delaware corporation somewhere in their corporate structure. Preferably as a holding company.
Now before the anti-Delaware crowd gets too hot and bothered, let’s remember that Central European Distribution was listed in the United States and had a great big bundle of bond debt issued here, too.
And like all good prepackaged bankruptcies, this case was primarily about sticking it to the investors. Trade creditors and employees went through the process unharmed.
The really interesting parts of the case – beyond the fact that it was done in just over a month – is that one of the board members who signed a declaration in support of confirmation of the plan and the overall structure of the plan.
The declaration was signed by an independent director of Central European Distribution, Joseph J. Farnan Jr.
Restructuring types will recognize the name as the former federal judge from Delaware who used to oversee the bankruptcy judges, and once withdrew the “reference” – a Federal District Court order that automatically places bankruptcy cases before the bankruptcy judges.
He joined the board in February of this year.
Now to the plan itself.
Senior bondholders got some cash and a fistful of new paper. Nothing too interesting there.
The convertible bondholders got a recovery that seems to have confused many in the financial news media. Indeed, I couldn’t make heads or tails out of it in any of the articles I have read.
To get to the bottom of this, I took a look at the memorandum submitted by Skadden, Arps, the vodka maker’s counsel, in support of confirmation of the plan.
The lawyers explain that holders of the convertible notes
who participate in the RTL Offer will receive total consideration of $55 million, comprised of $25 million in cash and $30 million in secured notes issued by Roust Trading – an estimated recovery of 35.4% – while holders who do not participate in the RTL Offer will receive their pro rata share of $16.9 million in cash.
They don’t define “RTL Offer,” but there is the orthodox footnote that capitalized terms are defined in the plan, so we go over there and find:
“RTL Offer” means the offer by RTL to exchange, subject to certain conditions, Existing 2013 Notes for Cash and securities issued by RTL on the terms described in the term sheet between RTL and certain holders of Existing 2013 Notes, dated March 14, 2013, and included with RTL’s beneficial ownership report filed with the United States Securities and Exchange Commission on Form 13D/A filed March 14, 2013.
They aren’t making this easy are they? So we head over to the Securities and Exchange Commission Web site to read the term sheet and find a document marked “privileged & confidential” yet filed with the S.E.C.
We also find out that there were about $155.3 million of the convertible bonds not owned by Roust Trading Ltd., the “RTL” of RTL Offer fame. That also tells us that RTL has been doing some shopping: they hold about $100 million of the convertible debt.
Either choice under the plan is giving the convertible noteholders the same amount of cash.
The difference is that the “RTL Offer” gives the old convertible noteholders additional RTL notes, which come complete with a PIK toggle. They are secured by 15 percent of the debtor’s new stock, which presumably won’t be worth a whole lot if the noteholders ever need to foreclose on it.
Maturity is in 2016, so basically it’s a gamble to see if you will get a bit more recovery a few years down the line.
What does RTL get out of this alternative offer? Well, convertible noteholders who take the offer are releasing any claims they might have against RTL rising out of its effective takeover of the debtor.
Stephen J. Lubben is the Harvey Washington Wiley Chair in corporate governance and business ethics at Seton Hall Law School and an expert on bankruptcy.
Stephen J. Lubben, holder of the Harvey Washington Wiley Chair in Corporate Governance & Business Ethics at Seton Hall, is an internationally recognized expert in the field of corporate finance and governance, corporate restructuring, financial distress and debt.
He is the author of a forthcoming textbook, to be published by Wolters Kluwer, on corporate finance, and a contributing author to the new Bloomberg Law on Bankruptcy treatise. He is also the In Debt columnist for the New York Times' Dealbook page.
Professor Lubben grew up in west Los Angeles and attended the University of California, Irvine, where he majored in History and minored in Political Science. Following graduation from law school, Professor Lubben clerked for Justice John T. Broderick, Jr. of the New Hampshire Supreme Court. He then practiced in the New York and Los Angeles offices of Skadden, Arps, Slate, Meagher & Flom LLP, where he represented parties in chapter 11 cases throughout the country.
Since joining Seton Hall, Professor Lubben has presented his papers at academic conferences around the world and frequently provides commentary on chapter 11 and related issues for national and international media outlets, including the Wall Street Journal, The New York Times, the Financial Times, Reuters, the Associated Press, Bloomberg, and the BBC.
He frequently advises government officials on potential legislative reforms, and has testified before Congress and the TARP Congressional Oversight Panel. He also is a regular contributor to Credit Slips, a blog started by a small group of bankruptcy experts.
Professor Lubben is a member of the New York and California bars. He is also a member of the American Finance Association, the American Law and Economics Association, the International Insolvency Institute, and the European Association of Law and Economics.
Shorts are bidding now, as opposed to acting like they have shares to sell like before, got em on the ropes!
Looks like a few want .02
Sorry, do YOU think this will run to June 5th? (Typo)
Do I think this will run into June 5th?
CEDCQ, S/O: just 70 m, while the insiders/funds are holding 20 Million shares. More important, they're keeping buying huge shares at low's.
Will be running like AAMRQ, as their costs were $4.
Been following Pacer. Chpt. 11 filings and the PR's do NOT agree with each other. This IS NOT Chpt. 7!
Look at UWBKQ as a loose example. Look at PPPMIQ as another. All Q's are different and this one is strategically disguised, like UWBKQ, imo.
No idea about time frame, sorry.
VC
This BK should've never happened right? Where are the lawsuits? So you think there's more to this story?
Yup happened twice. Tariko did some funky shit with this co
450k share just bought above the ask hummmmm
I'm still pushing or that 1000% gain
Cedcq will be Running like AAMRQ, insiders/funds holding 20 Millions of shares as the insiders/funds had their costs at around $3. They'll push it to go dollars to get their money back.
Break .046 and we'll move quickly to .07
VC
Please post daily chart. I am mobile So I can't, but it looks GOOD
CEDCQ can really rip man
shorts have to cover soon
Are shares cancelled next Monday?
It's quite possible and then today's positive activity is just from shorts covering to settle their trade before it's too late.
good god, it's here!
0.0255 here we go guys!!! people catching the new
Chpt. 11 or 7. Read the fine print. This is an effort to grab as many commons as possible.
VC
Just sharing as ambac recently said they would be cancelled and they were gone once deal was done
Do u really think I'm that naive? I can read bro lol. Same as every Q stock!
Read today's PR commons will be cancelled
Short are projecting strength in numbers, but they are so screwed
U might want to avg down here, ask drops on 10k hots
i bought 30k shares at 0.024 ave just after release news with lotto
Yup worst case scenario it is just a shell, but we can still trade the shares, and still make alot of money. It's coming IMO
You are correct- this is Chpt. 11, not Chpt. 7. 90% of the investing community hasn't a clue of the differentiation between the two.
VC
Shares just don't vanish. there is lingering doubt about the validity of the BK proceedings
There were only 4,000 shares on ask there. What a joke
Shares vanish after today, that was my impression when deal is done
CEDCQ is going to make PPMIQ look like a tinker toy.
VC
The shorts are weakened, the chart has turned. We don't have to do a damn thing but hold and wait for MOASS
I don't know, why would they extend it? Do they need all the note holders to exchange? What if they don't?
I am with you! What are you guys think about the news today?
See? It's all 10k share asks, fakeass shit
All shorts on ask. no one else is selling. hold and we will make lots of money
Coming off bottom here
In buying more just gotta hold it here and shorts will do the rest for us
Shorts are pissed off and desperate now
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CEDC GroupAbout usWe are the world's largest vodka producer, with annual sales exceeding 260 [or 280]million liters. We maintain leading positions in all of our key markets: Poland, Russia and Hungary. Our brand portfolio includes valuable and recognized brands like BOLS, Zubrówka, Absolwent and Soplica in Poland;Green Mark and Parliament in Russia; and Royal Vodka in Hungary. Each of these is a leader of their segment in these markets. We are also an active exporter. Zubrówka is delivered to over 40 countries around the world, including the United States, the UK, France and Japan. CEDC is also an important distributor and importer of alcoholic beverages. We cooperate with the biggest brands in the world, providing them with a developed distribution and sales platform in Poland, Russia and in Hungary. Our import portfolio in Poland includes, among others, Carlo Rossi, Concha y Toro, Metaxa Brandy, Remy Martin Cognac, Guinness, Sutter Home wines, Grant's Whisky, Jagermeister, E&J Gallo, Jim Beam Bourbon, Sierra Tequila, Teachers Whisky, Campari, Cinzano, Skyy Vodka and Old Smuggler. In Russia, Hennessey cognacs, Moet & Chandon and Concha y Toro wines are among the hundreds of assorted brands we import. ManagementAbout usExecutvie OfficersGrant WintertonRyan Lee Board of DirectorsRoustam TarikoDavid BaileyN. Scott FineMarkus Sieger Joseph J. Farnan JrAlessandro PicchiJose Aragon
CEDC around the world
Mission and visionAbout usMissionCEDC's mission is delivering products of the highest quality, enjoying consumers recognition and achieving leading positions in the market, assuring the Company's profitability and creating value for our shareholders. Strategic objectives
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