Agrokor gets new credit of EUR 480 million

The temporary creditors’ council of Agrokor has authorized the extraordinary management of the concern to sign an agreement on a financial arrangement of EUR 480 million. The amount includes EUR 80 million in loans approved by local banks.

The press release published on the company’s website adds that an additional EUR 50 million of a potential commodity loan with refinancing is meant for the suppliers.

The new loan to Agrokor will be secured by bondholders, headed by the Knighthead Capital Management fund, and the drawdowns in the local market are to be arranged by Zagrebacka Banka, under condition of a “previous acquisition of the authorization by the banking institution”.

– This is the last loan taken out by Agrokor under the extraordinary management, through which we will create the conditions necessary for a successful restructuring of the company – said Ante Ramljak, extraordinary trustee of Agrokor, as reported by the company in the press release.

The financial arrangement was approved by representatives of large and small suppliers, insured creditors and bondholders who attended the meeting, whereas representatives of uninsured creditors, represented by Sberbank, Agrokor’s biggest creditor, withheld their consent.

The Croatian media report that Sberbank previously submitted a proposal to the Commercial Court of Zagreb for forbidding Agrokor and the extraordinary trustee from signing new agreements on financing according to the “roll-up model”. The model enables new creditors to have their super senior rights to claims from before April 10, 2017, recognized.

Sberbank, as reported, believes that such a model is not in line with the Croatian regulations, but the court in Zagreb has rejected the proposal.

Fortenova grupa d.d.

SBERBANK Rusija

Zagrebačka banka d.d. Zagreb

Agrokor loan

Sberbank

Agrokor operations

Ante Ramljak