ZAGREB, July 5, 2018 – Prime Minister Andrej Plenković said on Thursday that creditors’ strong support for the settlement at Agrokor showed their support for the successfully organised and led process of emergency administration, adding that he expected future owners to continue the company’s restructuring.
Creditors approved the settlement plan for the indebted food and retail conglomerate in a vote on Wednesday. The plan was backed by creditors holding 80.2 percent of total claims, namely those with claims amounting to 27.08 billion kuna out of a total of 33.75 billion kuna.
“The fact that 80.2 percent of creditors voted in favour of the settlement yesterday is strong support and a confirmation of the successfully organised and led process of emergency administration in one of the biggest economic crises that threatened the stability of the Croatian economy, the stability of many Croatian companies, and many jobs,” Plenković said at the start of a cabinet meeting.
He said that the government had responded in that emergency efficiently and successfully to prevent a major crisis and ensure the survival of the company, the economic future of suppliers and the normal functioning of and payments to small farmers who otherwise would have collapsed. He added that the law on emergency administration ensured new liquidity and the restructuring and consolidation of the company.
Plenković noted that many stakeholders had tried to undermine the process and the government in order to destabilise the parliamentary majority. “We managed to withstand those attempts for one reason only, because we were guided solely by the general interests of the Croatian state and economy, jobs and the state budget. And we succeeded.”
He said that the settlement plan was yet to be approved by the Commercial Court, after which its implementation would begin.
Plenković thanked the coalition partner, the Croatian People’s Party (HNS), for supporting the government in this process. He also thanked all the cabinet ministers involved, former deputy prime minister Martina Dalić, emergency administrator Fabris Peruško and his deputy Irena Weber, and the former administrator Ante Ramljak. “All in all, this process is good for the Croatian economy. It sends out a message of confidence that Croatian institutions, the Croatian state have created a good legal framework,” Plenković said, adding that the law on emergency administration was found to be in conformity with the constitution and that it has become part of EU law.
Plenković said that he expected the future co-owners of Agrokor to continue the restructuring process and take account of Croatia’s economic interests and workers.
