Creditors of Croatian retail and food conglomerate Agrokor, which together hold 80.20% of total claims, have voted in favour of a Settlement Plan between the debtors and all creditors.
In a statement, Fabris Peruško, extraordinary commissioner for Agrokor, said that the vote brings the Extraordinary Administration procedure near to completion.
During a six-month negotiation process, the Extraordinary Administration sought to reconcile creditors’ interests, which were often diametrically opposed, to enable them to achieve an agreement which would be acceptable to everyone.
Turning The Corner
The adoption of the plan has resolved the threatened collapse of the largest Croatian company, which would have had devastating consequences not only the economy of Croatia but also of the region.
When the plan becomes effective, upon decision of the High Commercial Court, implementation will consist of more than 70,000 steps.
Operational Performance
According to Peruško, almost all of Agrokor’s operating companies are generating good operational results, which exceed both budget and expectations. He added that the plan is to hand over, as soon as possible, the company structure to the new owners for management.
The Extraordinary Administration procedure was activated in April, 2017 due to the likelihood of an uncontrolled bankruptcy at Agrokor d.d. and its key subsidiaries.
More than 5,700 creditors of Agrokor filed almost HRK 58 billion (€7.84 billion) of claims during the procedure. The negotiations on the settlement involved representatives of all creditors – from large international and local lenders, Croatian and foreign suppliers to small and micro companies and family farms.
Financial lenders will have the largest stake in the new Agrokor Group, including the largest single owner, Russia’s Sberbank, with a 39.2% stake. Bond holders will hold 24.9%, Russia’s VTB Bank 7.5%, and Croatian financial institutions 15.3%.
Suppliers will own 4.7% of the new group, with the largest share owned by Adris (1.4%), followed by Franck (1.3%) and Saponija and Sokol Marić (each with 0.6%).
Under the terms the plan, suppliers can count on an average of 60% repayment of claims, while financial institutions will get up to 20%.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine
