More than 20 participants in Agrokor’s new loan

Today the 4th ICC meeting was held. Members were informed that by the end of this week, an amount of €320m in new funds will have been received by Agrokor and the €80m Super Senior Loan provided in April will have been fully refinanced by the new loan. The total drawn amount, including the 1:1 refinancing of participants’ pre-petition debt, at the end of the week will be €800m and will include participation from more than 20 Croatian and international banks and funds. A further €80m of new money has been fully committed and is available for drawing until 15 October 2017 in addition to the €50m Supplier Tranche.

As a reminder, on June 8th the Temporary Creditors’ Council gave approval to the Extraordinary Administration of Agrokor to sign the contract for new financing in the amount of EUR 480m, that includes the EUR 80m of credit that was approved to Agrokor by local banks in April. On top of this amount, this credit arrangement foresees additional EUR 50m specifically allocated for suppliers as potential Commodity Loan with refinancing. The total credit arrangement signed with Knighthead Capital Management and Zagrebačka banka amounts to EUR 1,060m, of which EUR 530m is new financing and the rest is meant for the refinancing of the old debt. During the past month, participation in this arrangement was proposed to qualifying Agrokor creditors and the outcome is that it will include participation from more than 20 Croatian and international banks and funds

Today’s meeting of the Temporary Creditors’ Council was attended by Marica Vidaković as a representative of the creditor group “large suppliers”, Mato Brlošić as a representative of the creditor group “small suppliers”, and representatives of Knighthead Capital Management, LLC as representatives of the creditor group “bondholders”, representatives of Sberbank of Russia as representatives of the creditor group “unsecured creditors” and representatives of Zagrebačka banka d.d. as representatives of the “secured creditors” creditor group, along with Ante Ramljak, Extraordinary Trustee for Agrokor.

In today’s meeting, alongside the activity report regarding financing arrangements, the Extraordinary Administration in Agrokor d.d. presented to members of the Council a regular report on its activities as well as a report on the status of the Group in Bosnia and Herzegovina.

The Temporary Creditors’ Council was also presented with the criteria for the repayment of the old debt to Agrokor suppliers, that were discussed by the members of the Council and based on which a proposition of old debt repayment plan will be prepared for one of the following Council’s meetings. As a reminder, new financing foresees EUR 150m allocated for this purpose.

Following the fourth meeting of the Creditors' Council the Extraordinary trustee and members of the Council gave short statements for the media. Ante Ramljak, Extraordinary trustee emphasized on this occasion that the first tranche in the amount of EUR 30m from today’s loan will be paid to small suppliers, family owned agricultural producers (OPG) and Agrokor’s partners in agricultural cooperative by the end of the month.
He said that the company was successfully salvaged and that is entering the next phase of the process that involves restructuring.  The focus in this stage will be on profitability and increasing the income with an objective to achieve the best possible financial result,  that should enable higher returns of the debt that the company holds towards its creditors. 

Marica Vidaković, representing the group of creditors „large suppliers“  in the Temporary Creditors' Council highlighted that the suppliers have been actively involved in all the stabilization processes whose goal was to pay off the debt to suppliers and that she can confirm that the situation is developing in the positive direction for the suppliers. 

Mato Brlošić, the President of the Croatian Chamber of Agriculture (HPK) who is also the representative of “small suppliers” in the Temporary Creditors’ Council, said on this occasion that small agricultural producers in primary production will receive 100% of their money. This is the result of an agreement with the Extraordinary Administration. He also highlighted that the small suppliers will continue their cooperation with Agrokor.