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Don't watch this let it run, let the shorts quiver
Nice buy bro!
.023 x .025!
I know you did in that last quick run up
Why would they extend the deadline?
that is a good article .
Very good stock to make ton of money!!!
I wonder who bought all the shares today anyone have any idea?
Chart has turned, we saw how fast this can run up a few days ago, ran over 100% in about an hour. Today ran 80%. No brainer buy and hold
Interesting article
http://dealbook.nytimes.com/2013/05/24/the-curious-case-of-the-european-vodka-seller/
The 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.
SEC Reporting: "Existing Common Stock Shall Be Cancelled"
http://www.sec.gov/Archives/edgar/data/1046880/000114420413015147/v338208_ex99-39.htm
"Existing Common Stock shall be cancelled and receive no property under the Plan. The 5% New Common Stock allocated to Existing Common Stock under the Original Plan shall instead be allocated to RTL on account of the RTL Investment."
I agree this is just getting started I don't think there's enough stock out there M&Ms are playing the same game! I really had a hard time picking up couple hundred thousand shares.
Wacky trading. Shorts got extremely aggressive there towards end of day for some reason
Just three stooges on ask
:))) good for me
I'm buying more
CSTI just dumped that 100k on the bid, was chasing it down. Now we should go back up
$CEDCQ$ head fake
if it does I'm buying 1 million shares this time.
Look the arrow going south soon ;)
Weeee!!! Great run.
CEDCQ .028 up 85% on heavy volume here
Hold on tight! Here it comes!
If this is true the stock is going to explode with some positive news! Can you believe it I just got field It almost took me 5 to 7 minutes to get field And I was on the ask!
Ya I think we're gonna see 500% plus in one day, maybe today or tomorrow
Much more value than some realize apparently
It is very hard to buy shares they are holding them very tight I never seen this before.
We will do very well with these shares!
Added 500k shares at $0.014-0.018, Sweet run!!!!!!!!!!!!
New HOD up over 60% CEDCQ! Something big coming...
CEDCQ is gonna rock the house into .10 and beyond!
Yes indeedy!
Clearly a pump. This is a BUY and HOLD. If something were collective, she would have moved to .10, at least. Just a couple of pumpers if you look at the stream feed.
VC
What's going on it start move up?
Interesting article
http://dealbook.nytimes.com/2013/05/24/the-curious-case-of-the-european-vodka-seller/
The 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.
There has been a hostile takeover of CEDC and acting to the detriment of
the company and shareholders by Roustam Tariko.
This is opinion of one newspaper:
"We have here a picture how an big investor can by deception (the company
falsified quarterly reports, then has not publish them on time, not even
convened the General Meeting of Shareholders) gain even more wealth at the
expense of ordinary small shareholders. Justice authorities have
transferred all the assets of the person responsible for the financial
disaster, depriving the rest of the owners of all the shares."
Quoted from:
http://thepolandtimes.com/amerykanski-sad-okrada-rzesze-polskich-akcjonariuszy-cedc/
This is my opinion:
The case is so outrageous that CEDC operates in Poland, Russian, Ukraine
and Hungary is very dynamic and vibrant, and brands of alcohol which is the
distributor are the first point of sale. Deduction of impairment losses and
strange expenses book in the company cause apparent damage and difficult
situations. Striking is the lack of reports for the last periods, last is
from IIIrd quarter. Delaware court issued a judgment without knowing the
current situation of the company.
US bankruptcy courts in Delaware giving permission for bankruptcy under
Chapter 11 had not or did not want to have a true picture of the economic
situation of the company.
All activities of the management of CEDC and principal shareholder Roustam
Tariko in the last year are very suspicious and tend to think about
intentionally damaging the Company and its hostile takeover.
There is a suspicion that the company is headed by Mr. Roustama Tariko
(from July 2012, as a Director and Chairman of the Board of Directors, and
the
23 October 2012 as Interim President and Chairman of the Board of Directors
of the Company) specifically delayed repayment of debts maturing in March
2013 for which she was forced to also for the immediate redemption of debts
maturing in 2016.
What is intriguing - the main creditor of debts maturing in 2013 and 2016
is Russian Standard and affiliates, which causes suspicion acting to the
detriment of the company to a hostile takeover of its assets.
In April 23rd 2012, the Company signed an agreement between Roust Trading
Ltd. and CEDC
(http://www.sec.gov/Archives/edgar/data/1046880/000119312512177470/d336989d8k.htm,
http://www.sec.gov/Archives/edgar/data/1046880/000119312512298851/d378945d8k.htm),
the RTL committed to help in the repayment of the CEDC bonds maturing in
2013. Then in July 2012 Tariko took gouvernment in CEDC (Director and
Chairman of the Board of Directors) and contract was still valid. In
October consolidated its control in CEDC (Interim President and Chairman of
the Board of Directors of the Company). In January 2013 Tariko terminated
contract. What is interesting? Tariko cancel agreement with himself and
promised not to make a claim for any of the sides. Strange!
During this time, CEDC could issued shares to pay off debts maturing in
2013 of reached an agreement with creditors to extend the repayment period
of the dept. As You can see creditors agreed the deal with Tariq in March
2013, which moreover they lose. Also, CEDC offer probably also have been
approved.
This is a hostile takeover! Roustam Tariko and his company Roust Trading
Ltd. (RTL) has led to CEDC bankruptcy, and he is trying to make a hostile
takeover of the
assets, with the detriment of the company. CEDC secured before this fact
that in autumn 2011, was approved provisions allowing dilutive shares,
which seeks to prevent a hostile takeover.
Assumptions agreement between RTL and CEDC are given also in presentation
of the interim report IInd quarter 2012, which introduced shareholders in
error:
http://www.cedc.com/files/reports/investor_presentation__2012_q1.pdf page
14:
"Summary of Transaction with Russian Standard (“RS”)
•Transaction to be completed in three steps
–Closing 1 – Funding of $100 million to CEDC - Completed
•$30 million of new equity issued at $5.25 per share ~5.7 million shares
brings RS holding to apx 16%
•$70 million of notes issued, which can be converted to equity at $5.25
following shareholder approval (see below)
•All funds to be used to repurchase 2013 Convertible Notes
–Closing 2 – Following approval by shareholders - Scheduled for June
29th
•$70 million of notes can be effectively converted to equity before
maturity on March 18, 2013 – apx. 13.3 million shares to bring RS holding
to 28%
•$102.5 million of 2013 Convertible Notes held by RS will rollover into
new notes due mid-2016
–Closing 3 - January 2013 – February 2013
•New note issued to RS due mid-2016 to provide remaining funds to retire
full outstanding amount of 2013 Convertible Notes
–Certain interest payments from the notes are to be paid in shares,
brining the estimated holding of RS to apx. 29.5% in 2013"
Evidently brought company to bankruptcy state, as a fact may not be
appropriate. Are suspected impairment losses values ??held in 2011 in
the amount of approximately 1.057 millions and on the end of 2012 in amount
of 522 millions USD. There is not entered the positive and increase the
value of brands: Zubrowka White or other
brands. Please don't forgive about seven manufacturing plants and other
material resources.
http://www.sec.gov/Archives/edgar/data/1046880/000114420413015147/v338208_ex99-39.htm
"Existing Common Stock shall be cancelled and receive no property under the Plan. The 5% New Common Stock allocated to Existing Common Stock under the Original Plan shall instead be allocated to RTL on account of the RTL Investment."
Dumping continuing, Zut! They're blind.
That's why the insiders and funds who are holding their 20 million shares did NOT sell, as the current shares have values.
CEDC existing shares have values as
Russian Standard chairman Roustam Tariko and his Roust Trading group have agreed to take up to an 85% stake in CEDC in exchange for $172 million in cash
Central European Distribution Corporation (NASDAQ: CEDC) announced today that the Company and its subsidiary, CEDC Finance Corporation International, Inc. (“CEDC FinCo”), have amended their exchange offers, commenced on February 25, 2013, to reflect terms agreed to and supported by the Company, Roust Trading Ltd. (“RTL”), a major investor in the Company, and a Steering Committee of holders of approximately 30% of the outstanding principal amount of CEDC FinCo’s Senior Secured Notes due 2016 (the “2016 Steering Committee”).
Under the terms of the amended exchange offers, which expire at 11:59 PM, New York City Time, on March 22, 2013:
• RTL will acquire 85% of the equity of CEDC in exchange for (i) $172 million in cash, the proceeds of which will be paid by CEDC to holders of the Senior Secured Notes due 2016, and (ii) the compromise of a $50 million secured credit facility previously provided by RTL to CEDC;
• Holders of the Senior Secured Notes due 2016 who tender their Notes will receive (i) the option to receive a total of $172 million in cash, from the proceeds of the RTL investment, pursuant to a “Dutch Auction” procedure (the “Cash Option”) and (ii) to the extent not accepted in the Cash Option or at the option of individual holders, their pro rata share of (a) new secured notes due 2018 in the aggregate principal amount of $450 million (the “New Secured Notes”) and (b) new convertible secured notes due 2018 in the aggregate principal amount of $200 million (the “New Convertible Notes”);
• Holders of CEDC’s 3.00% Convertible Senior Notes due March 15, 2013 who tender their Notes, and RTL, as holder of $20 million principal amount of unsecured notes (the “Unsecured Notes”), together will receive their pro rata share of 10% of the equity in CEDC; and
• CEDC’s existing stockholders will have their stock holdings diluted to 5% of the equity in CEDC.
http://www.parkstreet.com/russian-standard-chairman-roustam-tariko-and-his-roust-trading-group-have-agreed-to-take-up-to-an-85-stake-in-cedc-in-exchange-for-172-million-in-cash/
Roustam Tariko is a Russian Billionaire in the wine businesses. He's going to take over CEDC and get it Re-listed.
Roust Trading Ltd. announcement:
WARWICK, Bermuda, May 13, 2013 /PRNewswire/ — Roust Trading Ltd. (“RTL”) announced today that it has extended the expiration date for its private offer to exchange (the “Exchange Offer”) each $1,000 principal amount of validly tendered and accepted 3.00% Convertible Senior Notes due 2013 (the “Existing CEDC Notes”) of Central European Distribution Corporation (“CEDC”) for (1) $193.17 principal amount of new Senior Secured PIK Toggle Notes due 2016 of RTL (the “New RTL Notes”) and (2) $160.97 in cash.
TY!..great questions...this think may RUN..no body knows!!!!
2 questions
From http://ih.advfn.com/p.php?pid=nmona&article=57091244
CEDC also announced today that Roust Trading Ltd. ("Roust Trading") has informed CEDC that Roust Trading intends to make an aggregate $5 million payment to all existing stockholders of CEDC, including Roust Trading, as of April 5, 2013, if the Plan is confirmed by the Delaware Bankruptcy Court. This payment, if made, would not affect the other recoveries currently indicated under the Plan and will only be provided on the condition that it does not otherwise impede or slow down the approval and consummation of the Plan and is agreeable to the Delaware Bankruptcy Court. Roust Trading continues to work with its advisors, as well as the advisors to CEDC, to assess its ability to make this payment and no assurance can be given by CEDC, Roust Trading or any other party that this payment will actually be made.
So, what's going on with this payment, doesn't it guarantee a sp of $0.07 (current market cap is 1.42M @$0.022)?
From the same PR, one can read:
The financial restructuring, which will eliminate approximately $665.2 million in debt from CEDC's and CEDC FinCo's balance sheets, does not involve the Company's operating subsidiaries in Poland, Russia, Ukraine or Hungary and should have no impact on their business operations. Operations in these countries are independently funded and will continue to generate revenue during this process. All obligations to employees, vendors, credit support providers and government authorities will be honored in the ordinary course without interruption.
So why the stock should be wiped out if the BK is involving only a subset of the company?
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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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