Agrokor’s assets are estimated to be worth about 2.5 to 3 billion euros.
Agrokor’s companies Vupik, Ledo, Belje, Jamnica, Zvijezda and PIK Vinkovci have reported that they have mortgaged part of their assets, based on a loan worth 480 million euros which was granted to Agrokor in June. That fact that part of the assets will have to be mortgaged was already announced when the loan was granted, because it is a guarantee for the loan providers – banks and US investment funds that have approved the loan with the so-called roll up model, which means that the money provided now has given a senior status to their old loans as well. Old loans are those approved to Agrokor before the so-called “Lex Agrokor” came into force, reports Večernji List on September 7, 2017.
Although all Agrokor’s assets have now been mortgaged, including some which already had a prior mortgage as well, without this loan approved in June the company would have to cease business operations. The loan has enabled, among other things, the repayment of old debtors to small vendors. A lot has been invested in production processes as well, and the companies whose assets have now been mortgaged have better business results than last year.
The focus of Agrokor’s extraordinary administration has been on the strengthening of business operations because that is the way to increase the value of individual companies so they can be sold for more, which would enable the repayment of as much of the debt as possible. However, it has long been clear that the funds received from future sales of the group’s companies will not be enough to cover all the debts.
Just the repayment of the latest loan will require more than a billion euros. In the end, and particularly if the group is left without its assets in Serbia and Slovenia, which are subject to proceedings launched by Russian banks on the basis of their previously approved loans, the assets of companies in Croatia will only be enough to repay the loan approved in June.
The most important thing is to improve operational business results because higher EBITDA would bring more money. If goals of the extraordinary administration are achieved, Agrokor’s assets could reach around 2.5 to 3 billion euros, including those abroad. If the group is left without assets in other countries, the amount would be much lower.
The assets status will be known after the audit of the group is completed at the end of this month.
Translated from Večernji List.
