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CEDC And Russian Standard Deepen Strategic Alliance

Stocks in this article: CEDC

MT. LAUREL, N.J., Sept. 14, 2012 /PRNewswire/ -- Central European Distribution Corporation (NASDAQ: CEDC) announced today that it has agreed to appoint Mr. Roustam Tariko, the Chairman of the CEDC Board of Directors, to serve as Interim President of CEDC. CEDC intends for this appointment to deepen the strategic alliance between CEDC and Russian Standard Corporation. Mr. Tariko will be appointed to serve as Interim President as soon as practicable but in any event upon the filing by CEDC of its restated financial statements with the United States Securities and Exchange Commission.

Once appointed, Mr. Tariko will serve as Interim President of CEDC on a temporary basis until the earlier of the appointment of a permanent Chief Executive Officer of CEDC or March 31, 2013. In his role as Interim President of CEDC, Mr. Tariko will supervise CEDC's operations outside of Poland. David Bailey will continue to serve as Interim CEO of CEDC with responsibility for company-wide finance and CEDC's operations in Poland, as well as the administrative, reporting, legal, compliance and audit functions of CEDC.

Mr. Tariko will continue to serve as Chairman of the CEDC Board of Directors. However, in light of Mr. Tariko's increased responsibilities at CEDC, the CEDC Board of Directors is amending the by-laws to provide for an increased role for the lead director also as Vice Chairman of the CEDC Board of Directors. Accordingly, Scott Fine will continue to serve as lead director and, upon the appointment of Mr. Tariko as Interim President of CEDC, Vice Chairman, of the CEDC Board of Directors.

CEDC also announced that Christopher Biedermann has resigned as CEDC's Chief Financial Officer, and Bartosz Kolacinski, the current Deputy Financial Officer of the CEDC group, has been appointed Interim Chief Financial Officer.  Mr. Biedermann will remain available to CEDC to assist CEDC's finance team for a transition period.

Update on Financial RestatementAs previously disclosed, upon the recommendation of CEDC's management, CEDC's Board of Directors has concluded that CEDC's financial statements for all reporting periods from and after January 1, 2010 should no longer be relied upon primarily due to the fact that certain retroactive rebates and trade marketing expenses were not properly recorded by CEDC's principle operating subsidiary in Russia, the Russian Alcohol Group. The Audit Committee of CEDC's Board of Directors initiated an internal investigation regarding CEDC's retroactive rebates, trade marketing expenses and related accounting issues. CEDC currently expects this internal investigation to conclude by the end of September or shortly thereafter.

In connection with the expected restatement, CEDC intends to file amended Quarterly Reports on Forms 10-Q for affected periods in 2011 and 2012 and an amended Annual Report on Form 10-K for the fiscal year ended December 31, 2011. CEDC expects to be able to file such amended Annual and Quarterly Reports, as well as its Quarterly Report on Form 10-Q for the quarter ended June 30, 2012, with the SEC as soon as practicable following completion of its internal investigation.

Because CEDC's accounting review and investigation are ongoing, the estimated timing included herein is subject to change.

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