Loan "creates pre-conditions for successful restructuring"

Loan "creates pre-conditions for successful restructuring"

Embattled Croatian food manufacturer and retailer Agrokor has secured a loan of EUR480m (US$536m) to "sustain" business operations amid a restructuring of the group.

The move, announced yesterday (8 June), came ahead of today's "final deadline" set for creditors to submit claims against the company.

Ante Ramljak, who was appointed to administer the stabilisation of the group earlier this year, said yesterday the loan was arranged by bondholders led by Knighthead Capital Management and domestic banks, and the total included an EUR80m loan granted to Agrokor in April.

Ramljak said: "This is the last credit for Agrokor under extraordinary administration, with which we will create pre-conditions for the successful restructuring of the company."

Agrokor said "most of the new financing will be used to complete preparations for the upcoming season and continuation of regular business operations of Agrokor member companies".

Agrokor said the new financing had been approved by "representatives of large suppliers, small suppliers, secured creditors and bond holders", while representatives of unsecured creditors "withheld" their approval. 

However, in addition to the new loan, Agrokor said it had agreed an amount of EUR50m "for creditors who are suppliers and who can provide goods or services instead of money, under identical terms as financial creditors and achieve the right of 1:1 refinancing of their old debt". 

Agrokor said last month parts of the group are set to be broken up and some sold off within a year to help pay down debts in a restructure of the group.