Agrokor gets loan of EUR 480 million, debt repayment to start

The extraordinary trustee of the Croatian government for Agrokor, Ante Ramljak, has confirmed that the concern has had a loan of EUR 480 million approved. Of this amount, EUR 150 million will be spent to repay the debts towards suppliers, whereas EUR 80 million will stay on the account until it is determined whether the amount will be needed.

According to previously published information, the loan will be approved through a roll up model, which means that the equal amount of old claims will be recognized as the priority in the collection of claims, along with 4% of the annual interest rate added to the principle amount, or 3.8% in cash, payable once a year.

– The first transaction of EUR 30 million from the loan will be paid to family farms and subcontractors by the end of July. In the next two to three weeks, the hundred percent of the debt towards them will be paid. This date marks the end of the survival phase. We have managed to save the company. There will be no bankruptcy proceedings and we are moving on to phase two, that is, the restructuring phase – Ramljak said.

Along with Zagrebacka Banka, Raiffeisen and Erste, American giants J.P. Morgan and Goldman Sachs, as well as several funds headed by Knighthead, will take part in the arrangement. According to the same source, the Russian VTB is also involved in the loan arrangement, and Sberbank might join it by the end of the week too.

– The second phase is the struggle for a better profit and increased revenues. There’s no fear that any unpleasant occurrences, such as the company’s or Konzum’s ruin, will take place. We are capable of bringing the company back to the level of profitability which will enable it to repay its debts – Ramljak said.

Agrokor will repay the debts towards small suppliers in around ten days, and those towards the big ones by mid-August.

The end of the survival phase and the beginning of operating restructuring means that Agrokor will lose a certain number of jobs, but the exact number is not yet known.

Fortenova grupa d.d.

Konzum Zagreb

Zagrebačka banka d.d. Zagreb

Raiffeisenbank Austria d.d. Zagreb

ERSTE BANK-AUSTRIJA

VTB Capital Rusija

SBERBANK Rusija

JP Morgan Chase & Co. SAD

Goldman Sachs New York

Ante Ramljak

JP Morgan

Goldman Sachs

Knighthead

VTB

Agrokor operations

Agrokor crisis