v2.4.0.6
Related party transactions
 12 Months Ended
Dec. 31, 2012
Related party transactions
19. Related party transactions

Pursuant to the SPA and the Amended SPA as described in Note 3, on May 7, 2012, Roust Trading acquired 5,714,286 shares of the Company’s common stock. Mr. Roustam Tariko who indirectly controls Roust Trading has been appointed to CEDC’s Board of Directors as a non-Executive Chairman of the Board. Effectively all entities controlled by Mr. Tariko are as of now related parties of CEDC, including Russian Standard Bank, Russian Standard Corporation, Roust Inc., Russian Standard Vodka (USA), Inc., Russian Standard Vodka, Union Trust Story and F.Lli Gancia.

As disclosed in Note 3 and Note 13 above, on May 7, 2012, the Company issued $70 million principal amount of senior notes due March 18, 2013, bearing on interest rate of 3% to Russian Standard Bank. The details of this transaction are described in Note 13 above.

In the ordinary course of business, the Company is involved in transactions with entities controlled by Mr. Tariko (“Roust”) that resulted in recognition of revenues, expenses, assets and liabilities by the Company.

The following table summarizes the transactions with Roust as included in the Company’s Consolidated Financial Statements:

 

Related party transactions

(in thousands)

       

Consolidated Statement of Operations and Comprehensive Loss for the period

    Period from
May 7 till
December 31,
2012		  

Net Sales

    $ 1,518   

Cost of goods sold

      1,863   

Selling, general and administrative expenses

    $ 1,059   

 

Consolidated Balance Sheet

(in thousands)

    December 31,
2012		  

Current Assets

   

Accounts receivable

    $ 57   

Other current assets

      2,291   
  

 

 

  

Total due from Roust

    $ 2,348   
  

 

 

  

Current Liabilities

   

Trade accounts payable

    $ 1,946   

Other accrued liabilities

      317   
  

 

 

  

Total due to Roust

    $ 2,263   
  

 

 

  

Net sales revenue comprises revenue from sales of Gancia products to Roust, SG&A constitutes mainly of: $0.2 million for holding inventory under the purchase agreement with Roust described in Note 7, $0.4 million for rent of office premises from Union Trust Story and Russian Standard Vodka, and $0.2 million for the cost of bank guarantees from Russian Standard Bank.