Interim Creditors' Council Gives Consent to the Extraordinary Commissioner to Assume New Guarantee for Refinancing Purposes

At the Interim Creditors' Council's session held on 4 September 2019 consent was given to the Extraordinary Commissioner to assume a new guarantee for refinancing purposes. The guarantee received three votes in favour, cast by the representatives of the creditor groups „bondholders“, „unsecured creditors“ and „secured creditors“, while the representatives of the creditor groups „large suppliers“ and „small suppliers“ voted against.

On that occasion Fabris Peruško said:

„As the decision received support from the majority, we will continue to pursue the activities required to be completed in order to refinance the SPFA by a bond this Friday. There are no obstacles any more for the transaction to be successfully closed, enabling us to meet one of the important conditions and tasks arising from the Settlement Plan implementation, being the SPFA refinancing.

Although today's vote had absolutely nothing to do with the conditional payment to the suppliers, I am sorry that the suppliers' representatives have let this interest of their's outweigh the interests of all other participants in the process. I am sorry that they have not recognized the importance of the refinancing for the future of Fortenova Group and all its stakeholders, including suppliers.

We had offered the suppliers to pay them almost EUR 9m this year, which means that the initial proposal of EUR 5m was increased by another EUR 3.8m, but this proposal has not been accepted.

Let me remind you that we have recognized the debt of EUR 17.5m to suppliers and that the Settlement Plan has not envisaged any payment dynamics for that debt whatsoever, but it is rather a matter of agreement based on the actual payment possibility and we have really done everything in our power for the agreement to be accomplished.

Unfortunately, no agreement has been reached, but the most important thing is that the refinancing has not been jeopardized and at the end of the day that is in the best interest of all stakeholders in the process, including our suppliers.“