Frequently asked questions
Below are frequently asked questions and answers about operations of the Agrokor Group.
What has happened to Agrokor?
Pursuant to the Law for the Extraordinary Administration for Companies with Systemic Importance for the Republic of Croatia (Official Gazette of the Republic of Croatia nr. 32/2017) as of April 7th 2017 the Management board of AGROKOR Group for company management, production and trade in agricultural products, a joint stock company, Zagreb (city of Zagreb), Trg Dražena Petrovića 3, Tax No. (OIB): 05937759187 (hereafter: Agrokor/Debtor), submitted a proposal to initiate the procedure for extraordinary administration at the Zagreb Commercial Court.
The law aims to provide a mechanism to ensure the liquidity, stability and sustainability of companies of systemic importance.
The Zagreb Commercial Court issued, on April 10th 2017, a Decision to initiate the procedure for extraordinary administration over Agrokor and some of its affiliated or subsidiary companies.
Who is managing Agrokor?
The Extraordinary commissioner / trustee for Agrokor was appointed, with rights and obligations of the Debtor, and who represents the Debtor independently and individually. The extraordinary commissioner / trustee independently manages business operations of the Debtor and carries out all procedural actions entrusted onto him in accordance with the Law for the Extraordinary Administration for Companies with Systemic Importance for the Republic of Croatia.
What is being done to improve the situation?
The extraordinary commissioner / trustee has engaged restructuring professionals with experience of working with companies in such circumstances.
The professionals are supporting Agrokor employees with the primary aims of:
- Safeguarding the businesses and assets of the Group;
- Ensuring the Group has sufficient liquidity to support ongoing operations, including raising additional finance as may be necessary;
- Assessing the strategic plans of the Group; and
- Achieving a restructuring which allows the Group to exit from extraordinary administration whilst protecting the interests of creditors
How do I make a claim in respect of amounts owed relating to the period before the Extraordinary Administration?
Claim reports should be completed by filling out form 18. Claim application in bankruptcy proceedings (article 257, item 1 of the Bankruptcy Act) pursuant to article 32 of the Law for the Extraordinary Administration, which is downloadable here. We hereby call once more to make an attempt of harmonizing claims with Group companies. If the creditor has claims towards more Group companies, it is necessary to complete a spate harmonization process for each company and to make individual claim reports for each company.
Claim reports must be sent to Agrokor d.d., Trg Dražena Petrovića 3, Zagreb with label “report – for Extraordinary Trustee” in two copies, per stipulations of the Bankruptcy Act. One copy is for the Commercial court.
Will Agrokor continue to trade?
Agrokor and its subsidiaries will continue to trade during the extraordinary administration.
What should I do if I wish to continue to trade with Agrokor or one of its subsidiaries?
Agrokor and its subsidiaries will continue to work with suppliers to meet the ongoing needs of the business. Please liaise with your usual contact within the Agrokor group.
If you are unable to reach your contact or have further questions, please email firstname.lastname@example.org
Why have Agrokor’s 2016 audited financial statements not been released?
The Group, working closely with its advisors, has identified in preliminary investigations that there could be potential errors in the Group’s accounts. These investigations are currently continuing. As a result, the Group requests that stakeholders not rely on its historical financial statements until the investigation has been completed and the situation clarified accordingly. The Group intends to appoint PricewaterhouseCoopers LLP to perform an audit of the Group’s 2016 financial statements. This appointment will result in the need for an extension for the release of audited financial statements for 2016.
What caused Agrokor to reach this situation?
We are unable to comment on the reasons for Agrokor’s entry into Extraordinary Administration at this time. Our immediate focus is on the stabilization of the business.
Should only debt that matured on April 9t 2017 be registered in the claim application process?
In accordance with the stipulations of Article 29, Paragraph 4 of the Law of the Extraordinary Administration of Companies with Systemic Importance for the Republic of Croatia, creditors should register their claims on April 9th 2017 in the amount that includes both mature debt and debt not yet due.
Where can I get updates as developments occur?
When updates are provided to the public, they will also be posted on the Company’s website.