Croatian food and retail group Agrokor has received approval from its creditors to arrange €480 million in new financing.
This amount includes the €80 million loan approved for Agrokor by Croatian banks in April. An additional €50 million is also earmarked for suppliers as a potential trade credit with refinancing.
Representatives of large and small suppliers, secured creditors and bond holders voted to approve, while representatives of unsecured creditors withheld their vote of approval for the loan.
Long-Term Stability
According to Agrokor, the new financing is aimed at securing long-term stability for business operations, maintaining value for all company stakeholders, and decreasing systemic risks with the Croatian economy.
This new loan will be secured by bondholders headed by Knighthead Capital Management. A financing tranche in Croatia will be arranged by Zagrebačka Banka, under the condition that it receives approval from the bank’s committee.
Most of the new financing will be used to complete preparations for the upcoming season and continue the regular business operations of Agrokor member companies.
Commenting on the development, extraordinary trustee Ante Ramljak said “This is the last credit for Agrokor under extraordinary administration, with which we will create preconditions for successful restructuring of the company”.
© 2017 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
