Zvečevo Depends on Government, Agrokor and Creditors

Lauren Simmonds

The Požega company needs around 104 million kuna and Agrokor’s support to begin on a restructuring plan.

The enormous earthquake caused by Agrokor followed by an Ivica Todorić shaped bombshell that caused a political divorce and threatened to crush the Croatian economy is still causing aftershocks throughout the country.

As Poslovni Dnevnik writes on the 14th of November, 2017, the vote on the restructuring plan for Zvečevo which was scheduled for November the 13th was not held yesterday, but was postponed for a period of eight days upon the request of the debtor who exercised his legal right to do so after things had suddenly become complicated in terms of the vote.

The company’s biggest lender is the ailing Agrokor Group which is currently in the process of extraordinary administration, without which it was not possible to agree upon Zvečevo’s restructuring, and as it failed to coordinate, Milan Nakić explained that Zvečevo requested an 8-day delay.

“This came as a surprise to us. Agrokor was expected to vote much earlier, but things are obviously turbulent within the company and they’re focused on their own problems.”

It is fully expected that within the aforementioned 8-day period, Agrokor’s extraordinary commissioner Ante Ramljak will obtain the consent of the temporary creditor council. Nakić added that it wouldn’t be good for anyone if this settlement doesn’t come to pass. Zvečevo is one of the largest economic entities in Požega and employs more than 300 workers, so in the context of the government’s plans for more assistance to Slavonia, it is expected that such moves will be materialised through giving support to Zvečevo.

Over the past three months, the accumulation has amounted to around 5 million kuna, and two chocolate and beverage factories are doing well. Zvečevo’s unsecured claims amounted to about 156 million kuna, and the first criterion required was achieved because an overwhelming majority of the creditors supported the plan.

Agrokor’s support is essential to Zvečevo’s restructuring plan and hopes are held high for the sake of the company and the employment opportunities it supplies to an otherwise overlooked area of Croatia that a settlement will be reached and that things can finally begin moving in the right direction.


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