Agrokor activates the law which was written especially for the company.
Agrokor’s board of directors submitted on Friday afternoon a request for the activation of the Law on Extraordinary Administration in Companies of Systemic Importance for Croatia, according to an official statement from the group, reports Index.hr on April 7, 2017.
CEO of Agrokor Ivica Todorić said that the decision was made in the belief that it is in the best interest of each individual employee, partner, supplier, and all other stakeholders, as well as of the overall economy.
“I want to inform you that Agrokor’s board of directors, with me as chairman, has initiated the process of activation of the Law on Extraordinary Administration. I have made the decision in the belief that it is in the best interest of each individual employee, partner, supplier, all other stakeholders and the overall economy. I sincerely thank all employees, close associates and partners with whom I have built the most important company in the history of Croatia,” said Todorić in the statement.
He added that, in all these years, including in recent extremely challenging times, he gave his best to ensure the stability of the company, protect over 60,000 jobs, and ensure the survival and prosperity of the entire Agrokor group. “Once again, I urge all those who can contribute to Agrokor to continue its operation, to save jobs, and to facilitate further development, to do everything in their power to make it happen. I have invested 40 years of my life in building the entire Croatia and region, so therefore today I am a proud man because, with my signature, everything I have built I have now given to the Croatian state,” said Todorić in the statement.
Prime Minister Andrej Plenković said earlier on Friday that the government was ready for the activation of the law, adding that the situation in the Croatian economy with regards to Agrokor would stabilize next week. He stressed that citizens would not bear the burden of saving Agrokor, because “the intention of the law is precisely to prevent such a scenario.”
After the government is officially informed about the activation of the Law, it has two working days to appoint an emergency management commissioner who will lead the restructuring of the company and negotiations with creditors and suppliers. It is not clear what will be the role of Antonio Alvarez, a restructuring expert brought to Agrokor a few days ago by its creditors.
Coordination of manufacturers and suppliers of Agrokor announced earlier on Friday that it would suspend the delivery of goods to Agrokor on Saturday morning, until an agreement is reached with the banks. The only exception are bread and milk which will continue to be delivered. According to unofficial information, the suppliers have not changed their decision even after Agrokor announced that it would activate the law. A source said that emergency commissioner had not yet been appointed. Suppliers points out they have no business relationship with the Todorić family, but only with Agrokor, and there is currently no one to talk to.
