New Filing - Roust Corporation Inc.

Roust Corporation Inc.

  • 12/30/16 Recap: Bottoms up! Roust is a large vodka producer that services, among others, the Russian and Polish markets. Here's the story: US and EU members impose economic sanctions on Russia = Russian GDP decline by 4% in 2015 = devaluation of the ruble = 11% inflation = expensive as holy hell to feed alcoholic habits = consumers look for discounts = retail sales decline 12% = record decline in overall Russian vodka market = fast forward to now, where, despite reversed sales trends, the company desperately needs to delever its balance sheet. Hence, the launch of a prepackaged chapter 11 filing to capitalize the business by over $500mm and delever by at least $462mm.  
  • Jurisdiction: S.D. of New York
  • Capital Structure: $207mm of bank debt, 488mm '18 CEDC FinCo-issued senior secured notes & $279mm '18 CEDC FinCo-issued Senior Convertible PIK Notes
  • Company Professionals: 
    • Legal: Skadden Arps (Jay Goffman, Mark McDermott, Raquelle Kaye, Julie Lanz)
    • Investment Banker: Houlihan Lokey (David Hilty)
    • Claims Agent: Epiq Bankruptcy Solutions LLC (*click on company name for docs)
  • Other Parties in Interest:
    • Existing Senior Secured Notes Steering Committee
      • Legal: Kirkland & Ellis LLP (Paul Basta, Robert Britton)
    • Existing Convertible Notes Steering Committee
      • Legal: Cadwalader Wickersham & Taft LLP (Richard Nevins, Gregory Petrick)

Updated 1/31/17