At the end of 2016, the Roust Corporation, controlled by Russian oligarch Roustam Tariko, asked the New York court protection from creditors under Chapter 11 of the US Bankruptcy Code, Russian media informs.
Roust is the second world’s largest vodka producer and the largest in Russia, Eastern and Central Europe.
U.S. Bankruptcy Court confirmed a $1.1 billion reorganization plan by Roust Corp. on Jan. 6, just one week after the case was filed. According to Roust, the filing was lodged in an attempt to reduce the company's debt by almost half - or around US$500m - by offering bondholders a debt-for-equity swap.
The filing is a result of declining vodka demand in Roust's major Eastern European markets, especially Russia, where the introduction of measures to curb alcoholism, along with a rise in illegal alcohol sales, have hit producers. Another reason - a ban on Russian deliveries to Ukraine due to which company's business in this country fell by 90%.
Source: Westfair online