MOSCOW, May 14 (RAPSI) – The US Bankruptcy Court in Delaware has approved a restructuring plan for the vodka dealer Central European Distribution Corp. (CEDC) according to a statement released by the company.

Russian billionaire Roustam Tariko serves as chairman of CEDC.

The prepackaged restructuring plan was proposed by Roust Trading Ltd., Tariko’s investment vehicle. Tariko is the largest CEDC shareholder with a 19.5 percent stake in the company.

CEDC filed for bankruptcy in early April after it found itself unable to handle a debt exceeding $1.2 billion. The restructuring plan will cut its debt by about $665.2 million.

As a result, CEDC will cease being a public company, while Roust Trading will take over 100% of its shares, according to the statement.

As of today, CEDC has obtained the required anti-trust approvals from the relevant Polish, Russian, and Ukrainian authorities. The reorganization and debt restructuring procedures are to be completed by May 31.

Tariko thus becomes the world’s second largest vodka manufacturer after the UK Diageo, the producer of Smirnoff. According to Impact Databank, CEDC distilleries rolled off 222 million liters of vodka in 2012. According to Russia’s federal statistics service, Russian Standard produced 23 million liters of vodka last year.

CEDC, which manufactures Zelyonaya Marka, Zhuravli, and Parliament, is a leader on the Russian vodka market. Russia accounts for 70% of its sales. In Poland, it owns the Zubrowka, Bols, and Soplica brands.

CEDC distributes over 700 brands, including Remy Martin, Jaegermeister, Metaxa, Corona, Foster’s, Jim Beam, and Guinness. It operates in Germany, Sweden, Denmark, Estonia, Azerbaijan, and Armenia as well.