Croatia’s PM Plenkovic affirms Agrokor’s debt not to be counted as state debt

PM Andrej Plenkovic assured that the debt of the ailing concern Agrokor that exceeds HRK 40bn at end-March will not be included in the state debt. We remind that the company is currently managed by a crisis manager, as its owner Ivica Todoric asked for putting the company under special state administration in line with the law for supporting companies of strategic importance, dubbed Lex Agrokor. The law does not provide for granting financial support from the state but does not rule out such explicitly either.

Meanwhile crisis manager Ante Ramjak announced that the company is close to reach another loan to secure operations this year. He did not mention when but sources from the company claim this would happen this week already. Both local and foreign banks are to participate, Ramjak also stated. The crisis manager elaborated that the creditors are willing to provide more funds than needed, all offering a roll-up option but did not mention the amount yet either. He said it was not decided yet what share of the old debt would be granted a senior status if fresh funds are provided. Agrokor received EUR 80mn in mid-April and is estimated to need EUR350m more.

To know more about Agrokor read here and here.

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