Beginning of the Agrokor’s full old debt payment to family owned agricultural producers (OPG), small entrepreneurs and micro-suppliers of Agrokor companies
Jul 26, 2017
Today, in Agrokor premises, a fifth meeting of the Temporary Creditors’ Council of Agrokor d.d. was held, where a decision was made to repay in full amount the so-called “old debt”, referring to the debt originated before the Extraordinary administration process was initiated, towards all family owned agricultural producers (OPG), small entrepreneurs and micro-suppliers of Agrokor’s companies who have registered their claims. The members of the Temporary Creditors’ Council were introduced with the criteria for payment of the “old debt” to suppliers in the previous meeting and in this meeting they were presented with a list of suppliers fulfilling the criteria for receiving payment of the “old debt” in the full amount. The Temporary Creditors’ Council has approved payment for over 2100 suppliers of Agrokor in the total amount of HRK 132 m. Large suppliers and other creditors have shown solidarity with the small suppliers, and based on this decision the debt towards solely this group of creditors will be paid in full.
As a reminder, for the purpose of the payment of “old debt” to all Agrokor suppliers who meet the criteria presented to the Temporary Creditors’ Council a total amount of EUR 150m was allocated from the new financing arrangement, and out of this total sum the amount of EUR 30m was reserved for family owned agricultural producers (OPG), small entrepreneurs and micro-suppliers of Agrokor companies.
Today’s meeting of the Temporary Creditors’ Council was attended by Marica Vidaković as representative of the “large suppliers” creditor group, Mato Brlošić as representative of the “small suppliers” creditor group, representatives of Knighthead Capital Management, LLC as representatives of the “bond holders” creditor group, representatives of Sberbank as representatives of the “unsecured creditors” creditor group and representatives of Zagrebačka banka d.d. as representatives of the “secured creditors” creditor group, along with Ante Ramljak, Extraordinary Trustee for Agrokor.
On the list for payment of the full amount of the “old debt” that will begin tomorrow and will last for the following four weeks, there are over 2100 suppliers who have registered their claims, and that fall under the category of family owned agricultural producers (OPG), small entrepreneurs and micro-suppliers. For the purpose of this process, micro-suppliers are defined as companies that have annual revenue which is less than HRK 5.2m in 2016. or a maximum level of HRK 2.6m in assets and no more than 10 employees in 2016. Taking in consideration the fact that the process of harmonizing claims is ongoing and not completed, the old debt payment amount is defined according to the available data and status of debtor internal accounting, and it includes the debt matured before the beginning of the Extraordinary administration process.
Since, due to the situation with Agrokor companies’ business books as well as large number of over two thousand suppliers which are involved, it is possible for smaller errors or oversights to occur, a dedicated e-mail address: email@example.com was opened where all creditors who meet the criteria can send their questions regarding payments. In case a payment is not made in the next two weeks to some of the suppliers who believe they meet the above mentioned criteria, they should contact Agrokor by e-mail: firstname.lastname@example.org.
The payment of a portion of the “old debt” towards all other suppliers will be decided in the meeting of the Temporary Creditors’ Council planned for the second half of August.
After the fifth meeting of the Temporary Creditors' Council the Extraordinary trustee and the representative of the small suppliers gave short statements for the media.
Ante Ramljak, the Extraordinary Trustee emphasized on this occasion that the suppliers list is quite comprehensive containing 2100 suppliers and that certain oversights are possible due to large numbers and said: “We have opened an e-mail address: email@example.com so that those who believe that they belong in the small supplier category and do not receive payment can contact us. We have left a certain amount in reserve for this purpose.” While answering questions he also pointed out Konzum sales have improved. “The drop of sale is stopped. We are having some small sales minuses on a daily basis, but the negative trend is stopped, it is now going upwards and moving towards last year’s values. For instance, Konzum’s retail has had approximately 2,5% lower sales compared to the same day last year, which is a good result considering the negative realization we had when the Extraordinary Administration was initiated. In nearly seven full months of this year this minus in total is less than 10% compared to last year.”, he said.
He thanked the family owned agriculture producers (OPG), small entrepreneurs and micro-companies, as well as all suppliers in general for their patience and invited them to continue the cooperation because real efforts are made to make this cooperation better than before. We will continue to service all claims on time, just as we have demonstrated so far. Any problem that they might have, we can solve together in peace.” said Ramljak.He thanked the family owned agriculture producers (OPG), small entrepreneurs and micro-companies, as well as all suppliers in general for their patience and invited them to continue the cooperation because real efforts are made to make this cooperation better than before. We will continue to service all claims on time, just as we have demonstrated so far.” said Ramljak.
Mato Brlošić, president of Croatian Chamber of Agriculture (HPK) who is also the representative of small suppliers in the Temporary Creditors’ Council said on this occasion that a large number of primary agricultural producers who have worked with Agrokor directly can expect the payment of their claims in the 100% amount in the following days. He also highlighted: “We have waited, have been patient and we believe that we did a good job for them and hope that they will invest the money they receive in agricultural production and continue their cooperation with Agrokor companies as they have so far.”
Regarding the small suppliers who have done business with Agrokor indirectly, through third party entities, Mato Brlošić said that if they do not receive their money in this tranche that does not mean that they will not receive it at all. “Small suppliers who have conducted business through agricultural product buyers and whose commodities came to Konzum shelves, will enter the B group tranche of payments. In a month we will discuss their status and then their fruit and vegetable buyers will receive certain funds and I sincerely hope that with these funds the buyers will be able to pay back their suppliers in the full amount. Then we can close this chapter since all of the agriculture suppliers who have worked with Agrokor directly or indirectly will their old debts paid. I will personally insist and try to talk with the representatives of fruit and vegetable buyers so that the small producers do get paid the same way as their colleagues who worked with Agrokor directly.”