Agrokor’s Bank Accounts Unfrozen

Total Croatia News

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Banks will provide up to 150 million euros in liquidity for Agrokor.

After the government this morning appointed an emergency management commissioner for Agrokor, Prime Minister Andrej Plenković held a meeting with company’s suppliers and creditors, reports Večernji List on April 10, 2017.

The Commercial Court in Zagreb confirmed the government’s decision to appoint Ante Ramljak as the commissioner and simultaneously prohibited the initiation of all litigation, enforcement and administrative procedures against Agrokor and its 24 subsidiaries and associated companies in Croatia, which enabled banks to unfreeze their accounts. As of 11.20 am, Agrokor’s bank account was no longer frozen.

Prime Minister Andrej Plenković met with the coordination committee of banks which are creditors of Agrokor. He later said that the banks supported legal and institutional framework for Agrokor and would provide the first tranche of liquidity, up to 150 million euros, for the group. Earlier in the day, the Prime Minister met with key suppliers of Agrokor who have agreed that Agrokor should first make payments to those companies whose bank accounts have been frozen.

Marica Vidaković, a representative of Kraš, one of major supplier, confirmed that the suppliers had agreed that they would again deliver their products to Konzum’s supermarkets. “Today we have agreed that we will restart with the deliveries and replenish the shelves in stores. We will invite all our employees to buy at Konzum to enable it to generate new money and to begin to service its liabilities,” said Vidaković.

After meeting with the banks, Plenković said that their representatives had given support to Ramljak. Plenković pointed out that the six banks would provide a new loan to Agrokor before Easter, which is on Sunday, so that employees and suppliers could be paid. “The amount will be up to 150 million euros. We will define details during the afternoon,” said Plenković.

The CEO of Zagrebačka Banka Miljenko Živaljić said that the banks supported the restructuring programme for Agrokor and confirmed that they would provide additional liquidity of 150 million euros. Members of the coordination committee of financial creditors are Erste Bank, Privredna Banka Zagreb, Raiffeisenbank Austria, Sberbank, VTB Bank and Zagrebačka Banka.

Ramljak was asked whether his arrival in the company meant that former members of the board of directors had been dismissed. He confirmed that was the case and said that they would be consulted about “clarifying some things about various contracts.” “There is no need for them to come to work every day,” said Ramljak.

Croatian Association of Trade Unions (HURS) called on the government, Prime Minister Plenković and Ramljak to stop ignoring workers of Agrokor and arrange a meeting with their legal and legitimate representatives to demonstrate that they really cared about their jobs. HURS points out that no one from the state authorities has met even once with representatives of the workers.


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