0001193125-12-466054.txt : 20121113 0001193125-12-466054.hdr.sgml : 20121112 20121113100027 ACCESSION NUMBER: 0001193125-12-466054 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20121113 DATE AS OF CHANGE: 20121113 GROUP MEMBERS: ROUSTAM TARIKO SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: CENTRAL EUROPEAN DISTRIBUTION CORP CENTRAL INDEX KEY: 0001046880 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-BEER, WINE & DISTILLED ALCOHOLIC BEVERAGES [5180] IRS NUMBER: 541865271 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-56061 FILM NUMBER: 121196446 BUSINESS ADDRESS: STREET 1: 3000 ATRIUM WAY STREET 2: SUITE 265 CITY: MT LAUREL STATE: NJ ZIP: 08054 BUSINESS PHONE: 8562736970 MAIL ADDRESS: STREET 1: 3000 ATRIUM WAY STREET 2: SUITE 265 CITY: MT LAUREL STATE: NJ ZIP: 08054 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: ROUST TRADING LTD. CENTRAL INDEX KEY: 0001548127 IRS NUMBER: 000000000 STATE OF INCORPORATION: D0 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 25 BELMONT HILLS DRIVE CITY: WARWICK STATE: D0 ZIP: WK 06 BUSINESS PHONE: 441-236-1612 MAIL ADDRESS: STREET 1: 25 BELMONT HILLS DRIVE CITY: WARWICK STATE: D0 ZIP: WK 06 SC 13D/A 1 d437713dsc13da.htm AMENDMENT NO. 9 TO SCHEDULE 13D Amendment No. 9 to Schedule 13D

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

SCHEDULE 13D

Under the Securities Exchange Act of 1934

(Amendment No. 9)*

 

 

 

Central European Distribution Corporation

(Name of Issuer)

 

 

 

Common Stock, par value $0.01 per share

(Title of Class of Securities)

 

153435102

(CUSIP Number)

 

Wendell M. Hollis

Roust Trading Ltd.

25 Belmont Hills Drive

Warwick WK 06, Bermuda

(441) 236-1612

(Name, Address and Telephone Number of Persons Authorized to Receive Notices and Communications)

 

November 13, 2012

(Date of Event which Requires Filing of this Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§240.13d-1(e), (f) or (g), check the following box.  ¨

Note: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See §240.13d-7 for other parties to whom copies are to be sent.

 

*   The remainder of this cover page shall be filled out for a reporting person’s initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosure provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act.

 

 

 


CUSIP No. 153435102  

 

  1   

NAMES OF REPORTING PERSONS

 

Roust Trading Ltd.

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨        (b)  ¨

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

WC

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)  ¨

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Bermuda

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH

REPORTING

PERSON

WITH

     7    

SOLE VOTING POWER

 

     8   

SHARED VOTING POWER

 

15,920,411*

     9   

SOLE DISPOSITIVE POWER

 

   10   

SHARED DISPOSITIVE POWER

 

15,920,411*

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

15,920,411*

12

 

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)  ¨

 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

19.5%**

14

 

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

OO

 

* This total includes 3,000,000 shares of Common Stock, par value $0.01 per share, which the Reporting Persons have a right to acquire, but as of the filing of this Amendment No. 9 to Schedule 13D have not acquired, under the Amended Securities Purchase Agreement, as previously disclosed in Amendment No. 7 to Schedule 13D filed with the Securities and Exchange Commission on July 11, 2012.
** This calculation is based on 81,843,480 shares of Common Stock, par value $0.01 per share, outstanding as of September 25, 2012, which includes (i) the number of outstanding shares of Common Stock, par value $0.01 per share, as of September 25, 2012, as reported by the Issuer in the Issuer’s Quarterly Report on Form 10-Q for the period ended June 30, 2012 filed with the Securities and Exchange Commission on October 5, 2012 and (ii) the 3,000,000 shares of Common Stock, par value $0.01 per share, obtainable upon exercise of the right to acquire such shares described in the note above. This calculation reflects the ownership percentage of the Reporting Persons when and if such 3,000,000 shares of Common Stock are issued.


CUSIP No. 153435102  

 

  1   

NAMES OF REPORTING PERSONS

 

Roustam Tariko

  2  

CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)

(a)  ¨        (b)  ¨

 

  3  

SEC USE ONLY

 

  4  

SOURCE OF FUNDS (SEE INSTRUCTIONS)

 

OO

  5  

CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(d) OR 2(e)  ¨

 

  6  

CITIZENSHIP OR PLACE OF ORGANIZATION

 

Russian Federation

NUMBER OF

SHARES

BENEFICIALLY

OWNED BY

EACH REPORTING

PERSON

WITH

     7    

SOLE VOTING POWER

 

0

     8   

SHARED VOTING POWER

 

15,920,411*

     9   

SOLE DISPOSITIVE POWER

 

0

   10   

SHARED DISPOSITIVE POWER

 

15,920,411*

11

 

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON

 

15,920,411*

12

 

CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)  ¨

 

13

 

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

 

19.5%*

14

 

TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)

 

IN

 

* This total includes 3,000,000 shares of Common Stock, par value $0.01 per share, which the Reporting Persons have a right to acquire, but as of the filing of this Amendment No. 9 to Schedule 13D have not acquired, under the Amended Securities Purchase Agreement, as previously disclosed in Amendment No. 7 to Schedule 13D filed with the Securities and Exchange Commission on July 11, 2012.
** This calculation is based on 81,843,480 shares of Common Stock, par value $0.01 per share, outstanding as of September 25, 2012, which includes (i) the number of outstanding shares of Common Stock, par value $0.01 per share, as of September 25, 2012, as reported by the Issuer in the Issuer’s Quarterly Report on Form 10-Q for the period ended June 30, 2012 filed with the Securities and Exchange Commission on October 5, 2012 and (ii) the 3,000,000 shares of Common Stock, par value $0.01 per share, obtainable upon exercise of the right to acquire such shares described in the note above. This calculation reflects the ownership percentage of the Reporting Persons when and if such 3,000,000 shares of Common Stock are issued.


CUSIP No. 153435102

 

AMENDMENT NO. 9 TO SCHEDULE 13D

Reference is hereby made to the statement on Schedule 13D filed with the Securities and Exchange Commission (the “Commission”) on November 28, 2011, as amended by Amendment No. 1 thereto filed on December 7, 2011, Amendment No. 2 thereto filed on February 1, 2012, Amendment No. 3 thereto filed on March 9, 2012, Amendment No. 4 thereto filed on April 25, 2012, Amendment No. 5 thereto filed on May 8, 2012, Amendment No. 6 thereto filed on June 11, 2012, Amendment No. 7 thereto filed on July 11, 2012 and Amendment No. 8 thereto filed on September 18, 2012 (as so amended, the “Schedule 13D”). Terms defined in the Schedule 13D are used herein as so defined.

The following items of the Schedule 13D are hereby amended as follows:

 

Item 4. Purpose of Transaction.

The Reporting Persons hereby add the following disclosure to this Item 4:

On November 13, 2012, Mr. Tariko sent a letter to the Issuer’s investors regarding governance of the Issuer.

The foregoing disclosure is qualified in its entirety by reference to the full text of the November 13, 2012 letter, a copy of which is attached hereto as Exhibited 99.33 and is incorporated herein by reference.

In furtherance of the foregoing objectives, the Reporting Persons may in the future engage in conversations with the Issuer, other stockholders and/or other securityholders with respect to this matter or other transactions or changes in governance, management or the Board of Directors of the Issuer and may make additional proposals that may include proposing, considering or undertaking one or more of the actions set forth in subsection (a) through (j) of Schedule 13D. The Reporting Persons may also seek to increase their ownership of the Issuer’s securities beyond that which they have on the date of this filing.

 

Item 7. Material to be Filed as Exhibits.


CUSIP No. 153435102

 

The Reporting Persons hereby add the following disclosure to this Item 7:

The following are filed as exhibits to this statement on Schedule 13D:

 

Exhibit No.

  

Description

Exhibit 99.33    Letter from Mr. Tariko to Investors in Central European Distribution Corporation


CUSIP No. 153435102

 

SIGNATURES

After reasonable inquiry and to the best of their knowledge and belief, the undersigned certify that the information set forth in this statement is true, complete and correct.

Dated: November 13, 2012

 

ROUST TRADING LTD.
By:  

/s/ Wendell M. Hollis

Name:   Wendell M. Hollis
Title:   Director
 

/s/ Roustam Tariko

Name:   Roustam Tariko
EX-99.33 2 d437713dex9933.htm LETTER FROM MR. TARIKO TO INVESTORS Letter from Mr. Tariko to Investors

Exhibit 99.33

 

LOGO

Fellow CEDC Investor,

I am writing to you to express my deep concerns regarding the financial and operating condition of CEDC, as well as my frustration with the Board’s persistent refusal to take the steps necessary to address the situation. Just last week, for example, the Company suffered yet another unacceptable failure, as it missed its second consecutive Form 10-Q filing deadline.

In July, Roust Trading entered into revised agreements with CEDC that provided for my company to make substantial investments in CEDC. Also in July, David Bailey became Interim CEO and assumed responsibility for the Company’s finance function. Since then, things have only gotten worse. I have come to the conclusion that the Interim CEO, as well as the Company’s Board, are either unable or unwilling to make the changes necessary to see the Company through the critical financial and operating challenges it currently faces.

The problems that have surfaced since July are serious and include:

 

   

The Company in October filed its restated financial statements reflecting an aggregate negative adjustment to the Company’s EBITDA of $59 million, which is approximately 50% higher than the anticipated impact at the time Roust Trading entered into the revised agreements.

 

   

As a result of the massive restatement, the Company is again in breach of its agreements with Roust Trading and Roust Trading is no longer obligated to complete the pending strategic alliance transaction.

 

   

The Company and certain of its executives are the subject of potentially serious investigations, including with respect to possible violations of the Foreign Corrupt Practices Act.

 

   

Last week, the Company failed for the second consecutive quarter to meet the Securities and Exchange Commission Form 10-Q filing deadline, providing yet another example of the Interim CEO’s inability to effectively and reliably manage the Company’s financial operations.

 

   

The governance arrangements the Company announced just two months ago have not worked effectively, as the Interim CEO and independent Board members refuse to honor the commitments they have made. Instead of focusing on the Company’s priorities, they have routinely flouted the existing arrangements, attempted to impose additional restrictions intended to constrain Roust Trading and diverted our attention from more pressing concerns to request additional compensation for Special Committee members.

Meanwhile, you and I are made to pay the price of these repeated failures. The stock trades today barely above $2.00, down nearly 70% from its 52-week high. In addition, the Company is facing critical cash needs due to, among other things, a coupon payment of more than $40 million

 

1


due December 2012 and large increases in excise taxes in Russia (over 70% from January 2012 to January 2013). Management’s only excuse for its failure to tackle this foreseeable problem is, incredibly, that it has yet to put together the basic financial information, such as short-term cash flow forecasts, required for it to act. These failures fall squarely on Mr. Bailey, yet the independent members of the Board have repeatedly refused to hold Mr. Bailey accountable.

Despite these failures, my goal is to find a way to fix and improve CEDC’s operating and financial condition. It is for this reason that I have devoted more than 60% of my business time over the last several months, as well as significant resources of Russian Standard, to try to reinvigorate CEDC, and it is for this reason that I continue to believe that it may be possible to complete an investment and strategic relationship with Roust Trading and Russian Standard, either on the terms of the revised investment agreements or on other reasonable terms acceptable to all parties. Having lost all confidence in Mr. Bailey and the independent members of the Board, however, I have significant doubts as to whether we will be able to complete a transaction, as it is simply impossible to negotiate in the absence of trustworthy management, credible financial information and effective Board oversight.

I hope you will agree with me that the time for action is now. Together, we can work to save CEDC. My efforts to work in a collegial manner with the Board and the Interim CEO have failed. I therefore write to you as fellow investors in the Company to urge you to reach out to the Board, in particular to its Lead Director Scott Fine, to demand that the Board proactively address the Company’s senior leadership failures by transferring responsibility for financial management from the Interim CEO to the Interim President or another qualified officer and appointing new independent directors with relevant industry experience to represent stockholder interests.

For my part, I am willing to continue to commit my industry expertise, time and resources to solve CEDC’s current challenges. I have offered to assume responsibility for the Company’s finance function, and have also suggested other CEDC employees who could do so. I have concrete ideas, but I am not willing to waste more of my time and resources with senior management and a Board whose independent members seem willing to push the Company over the cliff.

I look forward to an active and productive dialogue with you. Let us save CEDC—before it is too late.

Sincerely,

Roustam Tariko

 

2

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