Alcoholic beverages producers and importers Central European Distribution Corporation (CEDC) and Russian Standard have agreed a revised transaction for their strategic alliance.
The amended transaction is intended to stabilize CEDC's business and to allow CEDC to address its balance sheet issues in an orderly fashion. Changes in management structure are also included.
Under the revised terms, Russian Standard has, among other measures, released restrictions on $50 million in cash previously invested in CEDC, making such funds available for working capital and general corporate purposes, while CEDC has created a restructuring committee of the CEDC board of directors to be led by non-Russian Standard directors.
These revised terms also represent a settlement of the issues between CEDC and Russian Standard stemming from, among other things, the restatement of CEDC's financial statements for its 2010 and 2011 fiscal years in October of this year. CEDC and RTL have now both agreed to drop all claims and not to bring any legal action against the other for matters arising before today.
CEDC is one of the world's largest producers of vodka and Central and Eastern Europe's largest integrated spirit beverage company. CEDC produces the Green Mark, Absolwent, Zubrowka, Bols, Parliament, Zhuravli, Royal and Soplica brands, among others.
Russian Standard Corporation is one of Russia's most successful private companies with business interests in premium vodka, spirits distribution, banking and insurance. Russian Standard Vodka is the global leader in authentic Russian premium vodka.