Rustam Tariko may lose not only banking, but also the alcohol business. The scandalous owner of Russian Standard Bank and Rust alcohol holding decided to sell CEDC to a major player in the Polish food market.
It was decided to sell the company after in the second half of October the Moscow Arbitration Court satisfied the application of the London Citibank, and ordered the recovery of 49% of Russian Standard Bank to be reconsidered.
The bank’s shares are pledged under Tariko’s $451 million bonded debt of Russian Standard Ltd (RSB), which has been in default since 2017. For four years, Rustam Tariko fooled the creditors until the M&A company A1 got down to business. She bought back 30% of defaulted bonds. A few days later, the court of cassation decided that the lower courts had committed a violation of the rule of law.
The sale of CEDC is estimated at $1 billion, enough money to cover the loan debt, which, together with interest, is $850 million. However, there is great doubt that the businessman will do just that. The point is not at all in the bank, as it might seem at first glance, but in the alcohol holding “Rust”, through which Rustam Tariko could withdraw money to offshore, this is what his business is built on.
Rust took over the debt-laden CEDC holding in 2012-2013. As part of the debt restructuring, the company issued $464.6 million of secured bonds and $200 million of convertible bonds maturing in 2018. In the same year, it became known that bondholders received 6-year bonds worth $385 million with a 10% cash coupon of $20 million and 14% new class B shares. Convertible bondholders – 24% in class C shares. the debt was converted into class A shares. Thus, Rustam Tariko remained in the position of the controlling shareholder in Rust.
Arrangements were also reached with creditors to hold an IPO within a few years. But, there is a high probability that Tariko, along with the bank, may lose the alcohol holding, since in three years he will have to pay off the bond holders and the businessman does not have much time left.
