A bankruptcy application submitted by Vodka producer Roust in the US has been approved by a New York judge.

The application was recently filed with the US Bankruptcy Court for the Southern District of New York, with a prepackaged plan that seeks to reorganise $1.14bn in debt.

The plan, which was approved by more than 90% of its bondholders before the submission, seeks to reorganise $488m in senior secured notes, $279m in convertible notes, $160m in bank debt and $216m in debt held by subsidiaries, reported Law360.

"Positive performance has been offset by macroeconomic conditions beyond the company's control."

In a written declaration, Roust chief executive officer Grant Winterton was quoted by Law360 as saying: “Positive performance has been offset by macroeconomic conditions beyond the company's control, which have left the company overleveraged and hampered by liquidity constraints and high borrowing costs.”

The company expects that the implementation steps will be completed as soon as reasonably practicable.

With approximately 3,500 employees across Poland and Russia, Roust generates a major part of its revenue in Europe.

The firm currently operates from the US at executive offices in White Plains, two Delaware subsidiaries, CEDC Finance Corporation and CEDC Finance Corporation, reported westfaironline.com

Based on the plan, it is expected that the firm's capitalisation will bolster by more than $500m, its balance sheet will deleverage a minimum $462m, and its equity will see a boost of $55m.