Sberbank Not Considering Closing Down Current Credit Lines for Agrokor

Total Croatia News

Russian bank is the key creditor of Croatia’s embattled giant.

Sberbank is not considering closing down the current lines of credit for Agrokor’s companies and continues to provide financial support aimed at stabilizing the current operations of the group, according to information from the Russian bank, reports on March 23, 2017.

“We are in contact with the owners and the management of the company. Regardless of the difficulties, Sberbank is not considering the issue of closing down the credit lines and continues to provide financial support”, said Sberbank in an answer to Hina’s question. The bank did not answer the question about what amount would be needed to maintain the liquidity of Agrokor. However, according to Jutarnji List, a meeting of Agrokor’s major creditors was held on Wednesday. It included a presentation of a plan to maintain liquidity until June. The assessment of financial experts is that 2.7 billion kuna would be necessary to maintain liquidity.

Prime Minister Andrej Plenković said that the government was behaving responsibly with regards to Agrokor, and that the most important thing was to ensure liquidity and prepare a good restructuring plan, since Agrokor employs 60,000 people. The Prime Minister added that Deputy Prime Minister and Economy Minister Martina Dalić met with a number of suppliers, and that the government was also in talks with creditors. “We are part of that process. Everything we do is responsible, legal and taking into account the fact that this is a company that is virtually 100 percent privately owned”, said Plenković.

Suppliers are closely monitoring the situation in Agrokor as well. CEO and owner of Atlantic Group Emil Tedeschi said on Wednesday that the situation with Agrokor was complex, but added that he believed that the owners, together with other stakeholders, would find a solution that will guarantee the survival of the group, adding that communication with the group was very good.

Asked whether he would need to write off part of his claims, Tedeschi said that such an “ugly scenario” was possible. “Who am I to tell you anything different? The situation is complex. I understand that professional advisors have been engaged – Deloitte from London – which should analyze the company and present a report to creditors. I have not seen that document, and I do not know when I will see it.” Tedeschi confirmed that the Atlantic Group was in constant, daily contact with the management of Agrokor.


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