Agrokor’s Creditors Can Count on About 35% Debt Repayment, Write Offs Inevitable

Lauren Simmonds

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Moody’s estimates that Agrokor’s creditors can expect anything from a 35% to a 65% return, with inevitable debt write offs.

As Poslovni Dnevnik reports on the 13th of October, 2017, at the beginning of the year, Croatia’s largest privately owned company sank into an enormous crisis due to the lack of liquidity and huge debts, threatening the entire Croatian economy, so the government decided to intervene and began crisis management, to save time explaining a severely overworked subject, click here if you’d like to find out about the situation in depth.

“In our opinion, on average, Agrokor’s creditors are likely to receive claims on the lower part of the range of 35% to 65% according to the current Ca rating,” states Moody’s rating agency in a commentary published on Wednesday.

This week’s audit has shown that Agrokor dned the year 2016 with a net loss of 11 billion kuna. After Agrokor’s claims announcement which is expected later this month, the company’s crisis management team, headed by Ante Ramljak, will intensively address the proposal of a settlement of creditors involving domestic and foreign banks led by Russia’s Sberbank, as well as bonds and suppliers, notes Moody’s.

“Since many creditors have already filed lawsuits against Agrokor in several countries, negotiations on such settlements could take place,” Moody’s noted.

Agrokor admitted that a number of lawsuits were filed against them from outside of Croatia, most of them filed by Sberbank. The mandate of the extraordinary administration appointed by the government will last until the middle of July next year and it is expected that creditors will be able have their claims settled by that date. The alternative is bankruptcy.

Analysts say the deal will result in some creditors having to agree to write off some of the debt.


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