Agrokor: Extraordinary Administration Operation Results Will Be Known in March

Lauren Simmonds

Agrokor’s business data for last year should be known at the end of next month.

The Agrokor saga may have become somewhat more quiet over more recent weeks, but there is still a lot going on behind the scenes regarding Croatia’s largest privately owned company, under the leadership of Ante Ramljak, who has faced some hot water of his own of late.

As Poslovni Dnevnik/Jadranka Dozan writes on the 12th of February, 2018, the audit of Agrokor’s financial results began at the end of last year, and the recent published report from the Extraordinary Commissioner Ante Ramljak doesn’t actually contain any financial indicators of the company’s business operations.

The data on Agrokor’s monthly and cumulative results while under extraordinary administration should be available at the end of March this year. The report points out that the extraordinary administration is continuing to work on a draft resolution for the Commercial Court up until April the 10th. A comprehensive valuation of Agrokor’s assets value, ​​which should formally confirm that the total debt of the borrowers and guarantors in the Group exceeds its value, is currently in progress.

These estimates are in the function of determining the “fair value of the company when transferring to a new corporate structure” and the “fair return on all claims in the entity’s priority model”. Parties that have the interest to participate in the refinancing of the loan agreement with the status of the oldest claim (the so-called roll up) as envisaged in the draft resolution from the 20th of December, 2017, are being asked to contact Agrokor’s financial advisor, the report emphasises.

In the case of approval by a qualified majority, that loan agreement provided for an option to extend the funding for two years. At the same time, as part of the draft plan of settlement and exit from the extraordinary administration procedure, consultations with the provisional creditors council have begun, as well as the search process for the new President of the Management, which should be managed by Agrokor in the future.

Since the activation of the extraordinary administration procedure on April the 10th, 2017, Agrokor’s business expenses, by the end of last year, amounted to 458 million kuna. As a result, salaries amounted to 79.3 million kuna, and the cost of consultants (legal, financial, restructuring, forensic, etc.) came to an eye-watering 240 million kuna.

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