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Extraordinary administration over Agrokor - facility agreement

On April 13th, 2017, Agrokor d.d. as the borrower, Konzum d.d., Jamnica d.d., Ledo d.d., PIK Vrbovec d.d., Zvijezda d.d., Belje d.d., Vupik d.d. and PIK Vinkovci d.d. as guarantors, Zagrebačka banka d.d., Privredna banka Zagreb d.d., ERSTE Staiermerksiche d.d. and Raiffeisenbank Austria d.d. as lenders and Zagrebačka banka d.d. as agent entered into a facility agreement for up to €80,000,000. The facility shall have super senior priority pursuant to Article 39 of the Law on the Procedure for Extraordinary Administration in Companies with Systemic Importance for Republic of Croatia (Zakon o postupku izvanredne uprave) and shall be repayable on maturity, being 12 months or if the extraordinary management procedure is extended for 3 months, 15 months. The facility is secured pursuant to a debenture bond (zadužnica) issued by each of the borrower and the guarantors under the facility.

Furthermore, on April 13th, 2017, the Zagreb Commercial Court reached a Decision to appoint a temporary creditors’ council with the following members from each group of creditors:

  1. Toni Raič, owner of Stočarstvo Raič, Gudovac, Gudovac 1e, OIB 42972990123, as representative of the “SMALL SUPPLIERS” group whose claims are not greater than 100.000,00 kn per current ledgers of the debtor and its related and connected companies.
  2. KRAŠ prehrambena industrija d.d., Zagreb, Ravnice 48, OIB 94989605030, as representative of the “LARGE SUPPLIERS” group whose claims are greater than 100.000,00 kn per current ledgers of the debtor and its related and connected companies.
  3. Knighthead Capital Management, LLC, SAD, New York, 1140 Sixth Avenue as representative of the “BOND HOLDERS” group who own bonds issued by the debtor per current ledgers of the debtor and its related and connected companies.
  4. Sberbank of Russia, Russia, 117997 Moscow, 19 Vavilova St. as representative of the “UNSECURED CREDITORS” group whose claims toward the debtor and its related and connected companies are not secured.
  5. Zagrebačka banka d.d., Zagreb, Trg bana Josipa Jelačića 10, OIB 92963223473, as representative of the “SECURED CREDITORS” group whose claims toward the debtor and its related and connected companies are secured.