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Key creditors statement on validity of guarantees

Agrokor’s financial and legal advisers performed a thorough review of all claim filings, including claim filings based on guarantees issued by Agrokor’s subsidiaries. The claims on the basis of guarantees were examined and determined to be fully lawful and valid and have been recognized by the Extraordinary Administrator as valid claims, i.e. legally binding obligations of each of the respective operating companies which made a commitment under the guarantee agreements.

Guarantees are commonly used in financing transactions, particularly for conglomerates such as Agrokor, and are frequently used by Croatian lenders. In the case of Agrokor, operating companies provided guarantees to financial and credit institutions that were financing the group. These guarantees enabled the provision of several billions of Euros of funding that benefitted the group and, indirectly, the broader Croatian economy.

All guarantee obligations were in compliance with the governing laws of the financing documents and they were timely and properly disclosed to the public.

Many guarantees, which are admitted claims in the extraordinary administration proceeding, whose objectives are undoubtedly of systemic importance for the Republic of Croatia, are being challenged by different stakeholders to further their particular interests endangering the success of the extraordinary administration proceeding.

Unsubstantiated media claims from persons who are publicly promoting their particular interests, by presenting them as a matter of general and public interest, are not for the benefit of Agrokor's businesses, Agrokor's suppliers, Agrokor's employees or attainment of the objectives of the Extraordinary Administration Act. Since this issue is of great importance for the Croatian economy, it is critical that the group’s contractual obligations are adhered to so that the extraordinary administration procedure can continue as intended to ensure a value-maximizing outcome and fulfil goals of the Act. With the imperative objective to implement the Settlement Plan as quickly as possible given the statutory deadline, ongoing challenges to financial creditor rights will only compromise the process and cloud the optimistic outlook Agrokor currently enjoys.

The financial creditors have demonstrated their continued support for the Agrokor group and are actively participating in the extraordinary administration proceedings with the aim of ensuring the long-term sustainability of the group and successfully achieving all objectives of the Extraordinary Administration Act.

Issued on behalf of:

Fidelity International

Knighthead Capital Management, LLC

Sberbank of Russia

VTB Bank (Europe) SE

Zagrebačka banka d.d.