News

Litigation status on 15 September 2017

This update sets the various litigation and enforcement proceedings that have been formally issued against Agrokor d.d. and a number of its affiliates.

The extraordinary administrator also understands that certain other proceedings have been issued but not yet formally served on the relevant Agrokor company. Those proceedings will be addressed when such service takes place.

Croatia

As noted in the monthly report, the High Commercial Court rejected the appeal of Sberbank of Russia and confirmed the decision of the Commercial Court in Zagreb of 27 June 2017 in which the Commercial Court rejected the petition of Sberbank of Russia to annul the decision of the Interim Creditors’ Council of 8 June 2017 by which the Interim Creditors’ Council provided approval to the Extraordinary Administrator to assume new debt.

The temporary injunction proceeding brought by Sberbank of Russia has been remitted to the Commercial Court in Zagreb for reconsideration and the extraordinary administrator is awaiting an update from the court.

Further, by a decision on 6 September 2017, the Commercial Court in Zagreb dismissed the following three petitions of Sberbank of Russia as inadmissible:

  1. the petition to declare the provisions of the Super Priority Term Facilities Agreement which allow “roll-up” financing of old debt and bond redemption, as well as all other restrictive provisions of that Agreement, null and void;
  1. the petition to declare null and void the transaction in which Agrokor d.d. redeemed bonds at their nominal value; and
  1. the petition to have the Commercial Court in Zagreb submit a request to the Constitutional court to examine the constitutionality of Articles 40 and 41 if the Law on Extraordinary Administration Proceeding in Companies of Systemic importance for the Republic of Croatia.

Slovenia

As noted in the monthly report for August, the extraordinary administrator has filed responses to the objections and appeals filed by two Sberbank entities and the Republic of Slovenia in the recognition proceedings in Slovenia. Sberbank and the Republic of Slovenia have an opportunity to file a further response.

The decision of the Slovenian Court to grant a temporary injunction in favour of Sberbank of Russia over Agrokor d.d.’s shares in Mercator was served during the last reporting period. The extraordinary administrator filed an objection against the temporary injunction to secure its position, although it is expect that the court will issue a declaratory decision that the proceedings are suspended by operation of law.

The existing proceedings remained suspended by operation of law pursuant to the recognition order granted on 14 July 2017.

Serbia

During the last reporting period, the extraordinary administrator has filed objections to the enforcement actions brought by members of the Sberbank group in respect of:

  1. the shares of MG Mivela d.o.o. held by Jamnica d.d;
  1. the shares of Dijamant a.d., KRON d.o.o., M-Profil SPV d.o.o and Nova Sloga Trstenik d.o.o. held by Agrokor d.d; and
  1. the shares of Idea d.o.o. held by Konzum d.d.

The decision of the court is awaited in these proceedings.

The following proceedings have been issued against the Agrokor group during the period:

  1. Banca Intesa has issued a debt claim against Konzum d.d., Jamnica d.d., Zvijezda d.d., Agrokor Trgovin d.o.o. and PIK Vrbovec Mesna Industrija d.d as well as a request for a temporary injunction in respect of the shares of Idea d.o.o. held by Konzum d.d. The extraordinary administrator is preparing a reply to this claim.
  1. Sberbank Rusija has sought injunctions preventing the disposal or encumbrance of:
  1. Agrokor d.d.’s shares in Dijamant a.d. Zrenjanin;
  2. Ledo d.d.’s shares in Frikom d.o.o;
  3. Konzum d.d.’s shares in Idea d.o.o.; and
  4. Agrokor d.d.’s shares in KRON d.o.o. and M-Profil SPV d.o.o.; and
  5. Agrokor d.d.’s shares in Nova Sloga d.o.o.

The extraordinary administrator has filed, or will file shortly, appeals against these injunctions and the decision of the court is awaited.

Banca Intesa has also issued enforcement proceedings against Agrokor d.d. in respect of its shareholdings in Dijamant a.d. Zrenjanin, KRON d.o.o. Beograd, M-Profil SPV d.o.o. Beograd and Nova Sloga d.o.o. Trstenik. The extraordinary administrator filed an objection to these proceedings.

On 26 July 2017 the extraordinary administrator filed an application for the recognition of the extraordinary administration process in Serbia. That application was opposed by Sberbank and Banca Intesa. The first instance court issued a decision on 30 August 2017 rejecting the extraordinary administrator’s application. An appeal was filed against this decision on 14 September 2017 and the extraordinary administrator awaits the decision of the court.

Bosnia and Herzegovina

On 8 September 2017 Agrokor was served with a motion filed by Sberbank Rusija in the municipal court in Sarajevo in order to forbid any sale or burdening of Agrokor d.d.’s shares in Konzum d.o.o. Sarajevo and Ambalažni servis d.o.o. Sarajevo. A hearing was listed for 14 September 2017, but that hearing was vacated on procedural grounds and has been re-listed for 5 October 2017.

The extraordinary administrator understands that certain companies in the Sberbank group have initiated further enforcement proceedings and sought injunctions against entities of the Agrokor group in Bosnia and Herzegovina. The extraordinary administrator understands that the following proceedings have been initiated:

  1. request for injunction filed by Sberbank Rusija in the municipal court in Travnik in order to forbid any sale or burdening of Jamnica d.d.’s shares in Sarajevski Kiseljak d.d. Kiseljak;
  1. enforcement procedure initiated in the municipal court in Sarajevo by Sberbank Zagreb against Agrokor d.d. over shares in Konzum d.o.o. Sarajevo, Ambalažni servis d.o.o. Sarajevo  and Boreas d.o.o. Kreševo;
  1. enforcement procedure initiated in the municipal court in Travnik by Sberbank Zagreb against Jamnica d.d. over shares in Sarajevski Kiseljak d.d. Kiseljak;
  1. enforcement procedure initiated in the municipal court in Sarajevo by Sberbank Ljubljana against Agrokor d.d. over shares in Konzum d.o.o. Sarajevo, Ambalažni servis d.o.o. Sarajevo  and Boreas d.o.o. Kreševo; and
  1. enforcement procedure initiated in the municipal court in Travnik by Sberbank Ljubljana against Jamnica d.d. over shares in  Sarajevski Kiseljak d.d. Kiseljak.

No documentation has yet been served on the extraordinary administrator relating to these proceedings, but the necessary steps will be taken if such service takes place.

The extraordinary administrator has filed an application for recognition of the extraordinary administration procedure in Bosnia and Herzegovina, which has been challenged by Sberbank. The extraordinary administrator is awaiting service of the Sberbank’s objections and will take steps to resist such objections. 

England and Wales

In July the extraordinary administrator filed an application in the Chancery Division of the High Court of England and Wales seeking the recognition of the extraordinary administration process. Sberbank objected to the application, and filed further evidence in response during the reporting period. The extraordinary administrator has filed further evidence and a hearing is scheduled for the end of October.

The arbitration proceedings have been stayed pending the resolution of this application.

Montenegro

The extraordinary administrator does not have any further information to report on the enforcement proceedings issued by Hipotekarna Banka Ad Podogorica against Ledo d.o.o. in Montenegro.