After the first 100 days of the government-appointed commissioner in Agrokor, the company’s future is still a mystery.
Judging by statements given by Ante Ramljak, the government-appointed commissioner of Agrokor, the first 100 days of the emergency management were successful. He says the company is on the right track, reports N1 on 21 July 2017.
The analysis of the first 100 days of extraordinary administration in Agrokor contained a lot of what we have already heard hundreds of times before. But, one statement was particularly interesting – whether it was just a mistake or an admission that the government should have reacted sooner.
“The process was started at the very last moment. If the government reacted just a week later, it would not be possible to normalise the company’s business operations,” said Deputy Prime Minister and Economy Minister Martina Dalić.
Justice Minister Dražen Bošnjaković was also quite open. “There was much discussion why Agrokor was not dealt with under the Law on Bankruptcy. I want to make it clear here – the goals of ‘Lex Agrokor’ are significantly different; the law has brought stability,” he said.
The government decided to help Agrokor's suppliers and give them priority in repayment of debts ahead of other creditors. This is the reason for numerous claims that the government can expect an avalanche of lawsuits. Still, the criticism would certainly be far sharper if the government decided the opposite.
Small suppliers will be repaid in full, in the amount of about 30 million euros. Without “Lex Agrokor”, most of them would go bankrupt. Medium and large suppliers will receive a smaller portion of the money owed to them, in the total amount of 110 million euros. Those who regularly talk about lawsuits are ignoring the fact that all key creditors have agreed to such a solution, which certainly limits the subsequent possibility of them challenging the whole process. What makes many people nervous is the slowness of the restructuring process, but such extended deadlines are defined by the law.
“Agrokor will now go through the restructuring process, and we will put the focus on the profitability of the company. I think we are on the right track now,” said Ramljak rather vaguely.
By the end of the month, the total amount of Agrokor’s debt is expected to be known, based on which the permanent creditor council will be formed, which will then be able to make far-reaching decisions on the restructuring plan and final settlement.
Translated from N1.
