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Beleaguered vodka maker Central European Distribution (CEDC -8%), which is in the midst of a...

Beleaguered vodka maker Central European Distribution (CEDC -8%), which is in the midst of a restructuring, has received a new proposal from a consortium of investors which includes Stolichnaya Vodka owner SPI Group. The offer: $280M in cash and $650M in debt in exchange for 100% of the restructured equity. 
Comments (7)
  • davidbdc
    , contributor
    Comments (3158) | Send Message
     
    Heck, for shareholders BK might be better. This proposal = zero!
    21 Mar 2013, 05:03 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5581) | Send Message
     
    "$280M in cash and $650M in debt in exchange for 100% of the restructured equity. "

     

    (CEDC) is selling for $23.3 million. Wouldn't it be better to buy 100% of the outstanding shares?
    21 Mar 2013, 11:04 PM Reply Like
  • Walkingwounded
    , contributor
    Comments (240) | Send Message
     
    The bonds are convertible, so you need to figure this in too. Basically I think the shareholders are phuked and should sell or switch to the bonds (2013 or '16)
    22 Mar 2013, 05:42 PM Reply Like
  • MARQ103
    , contributor
    Comment (1) | Send Message
     
    where does that leave us the shareholder if you are still in
    22 Mar 2013, 08:39 AM Reply Like
  • ACDC60
    , contributor
    Comment (1) | Send Message
     
    Poor previous management, the gullibility of mostly American investors looking at the cheap valuation of this stock in relation to sales. Failed to listen to poor management execution, broken earnings estimate, failure to renew licenses, change in Russia Law on taxing alcohol and a predator who saw the chance to take out this bird two inches from the death of the company at effectively zero cost on what he would have cost him. The company seemed to have borrowed money from a knowledgeable businessman who was essentially a money lender with an ulterior motive to acquire the company as cheap as possible.

     

    The only issue raised below that tweaks my interest is the paltry value of the company against 280 million cash investment mentioned below against market value.

     

    I am that typical foolish private investor previously who bought and bought and bought again on the way down. Thinking averaging down was a great idea. I never learn.
    26 Mar 2013, 03:56 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5581) | Send Message
     
    If you have $10 million, you can challenge the Russian businessman for ownership of the company.
    27 Mar 2013, 01:14 PM Reply Like
  • Walkingwounded
    , contributor
    Comments (240) | Send Message
     
    Well forcing the company into BK seems best, the possibility of others interested like Diagio or constellation brands may force higher bids. The common shareholders are toast, but bonds may get back a large part of their investment.
    27 Mar 2013, 01:25 PM Reply Like
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