ZAGREB, March 6, 2018 – Agrokor is actively managing its liquidity and as of February 28 available liquidity totalled 1.68 billion kuna, according to a report on the state of affairs in the conglomerate when the new emergency administration took over.
Since the beginning of the emergency administration process April 2017, supplier liquidity has increased considerably through payment of old debts and the payment of all new invoices within contractual deadlines, says the report published on the Economy Ministry’s website on Tuesday.
It is estimated that during the emergency administration process suppliers will be paid over 2.1 billion euro in total, including over 490 million euro in outstanding debts.
The Agrokor system is actively managing its liquidity, updating cash flow projections every fortnight and establishing and approving weekly payment budgets based on those projections for the 19 basic operational companies, which make up over 90% of the group’s cash flow, the report says.
As of 24 November 2017, Agrokor’s key Croatian companies, excluding those in retail and wholesale, have switched to a two-week payment regime, with only outstanding payments made on a weekly basis, the report adds.
According to preliminary results for the first 11 months of 2017, EBITDA in retail and wholesale was -149 million kuna, 1.04 billion kuna in the food division and 283 million kuna in agriculture.
The newly-appointed emergency administration is continuing to work in line with a draft settlement plan presented to the creditors and the public in December, the report says, adding that the draft clearly shows that the value of the group will be transferred to the creditors who will become its owners after the settlement is carried through.
It is expected that a majority of the creditors will have to write off part of their receivables based on financial projections and the whole system’s assets, the report says, adding that the emergency administration also expects the creditors to support the establishment of a permanent creditors council, which will not be possible before May.
The goal is to agree the terms and conditions of the settlement plan by April 10, the report says.
