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Agrokor d.d. Publishes Tenth Monthly Report of the Extraordinary Administration

Agrokor Monthly Report January 2018

The tenth monthly report on the development of the economic position and implementation of measures and activities in the Extraordinary Administration procedure at Agrokor d.d. and the related companies within the Group was published today. The report covers the period from January 11 to February 10, 2018. Given that on December 31, 2017 the audit of the Agrokor Group's financial results has started and the monthly and cumulative results are expected to be available on March 31, 2018, the current monthly report does not contain any key performance indicators of the companies' operations.

Key activities of the Extraordinary Administration over the last month were related to the registration of claims and the Ruling on assigning creditors to groups. On January 15, 2018, the Commercial Court in Zagreb passed the Ruling on Determined and Contested Claims, published at the Court's e-bulletin board. The Ruling states that further to the claims examined and acknowledged by the Extraordinary Commissioner in the amount of HRK 41.45bn and contested in the amount of HRK 16.43bn, the creditors have mutually contested claims amounting to more than HRK 10.4bn. Guarantees and co-debtorships contested by other creditors amount to more than HRK 101bn. Currently, prior to the completion of civil proceedings, the total sum of determined main claims amounts to HRK 31,043,173,116.50.

On January 26, 2018, the Commercial Court in Zagreb passed the Ruling on Assigning Creditors to Five Groups. The number of Creditors' Council Members and the assigning of creditors to groups is established by the Court, upon proposal of the Extraordinary Commissioner, while the Creditors' Council Members shall be determined, ie. elected by the creditors. Creditors of Agrokor have been assigned to the following five separate groups:

1.         GROUP A – Creditors whose claims are secured with secured rights, ie. those holding firm securities such as mortgages over real estate or share pledges.

2.         GROUP B – Creditors who are holders of bonds issued by the debtor, to the benefit of whom guarantees have been issued / there is a co-debtorship in place, in either case of not less than five related and/or subsidiary companies of the debtor which are subject to the extraordinary administration procedure.

3.         GROUP C – Creditors with pre-petition claims to the benefit of whom guarantees have been issued / there is a co-debtorship / there is a recourse debtorship in place of not less than five related and/or subsidiary companies of the debtor which are subject to the Extraordinary Administration Procedure, who have participated in financing the debtor by way of the Super-Priority Term Facilities Agreement dated June 8, 2017.

4.         GROUP D – Creditors to the benefit of whom guarantees have been issued / there is a co-debtorship / there is a recourse debtorship in place of not less than five related and/or subsidiary companies of the debtor which are subject to the Extraordinary Administration Procedure, who have not participated in financing the debtor by way of the Super-Priority Term Facilities Agreement dated June 8, 2017.

5.         GROUP E – Creditors (including suppliers) to the benefit of whom no guarantees have been issued nor is there a co-debtorship or recourse debtorship in place of not less than five related and/or subsidiary companies of the debtor which are subject to the Extraordinary Administration.

Once the Commercial Court had passed the Ruling on Assigning Creditors to Five Groups, on February 1, 2018, the Extraordinary Commissioner has through the Official Gazette, in line with the procedure and deadlines from Art. 30 of the Act on Extraordinary Administration Proceedings in Companies of Systemic Importance for the Republic of Croatia, invited the creditors with determined claims to elect and appoint Members to the Creditors' Council for each individual creditor group. The creditors are obliged to submit a power of attorney for the elected Creditors' Council Member of their respective group. The recommended power-of-attorney form for the elected member of the Creditors' Council for the respective groups can be found on the website of Agrokor d.d.: http://nagodba.agrokor.hr/.

The Council Member for each individual group is considered to be elected if voted for by the regular majority of all creditors within one group. In case a creditor group should not elect a member to the Creditors' Council within 90 days as of publication of the invitation in the Official Gazette, such member shall be appointed by the Court within an additional period of 8 days.

The Extraordinary Administration continues to pursue all available legal activities aimed at protecting the assets of the Agrokor Group and its companies in Croatia and abroad, and the intensive communication and interaction with all key stakeholders on all markets has been continued as well.