The process of reaching a settlement under the extraordinary administration procedure of Agrokor is one of the most complex in Croatia and in Europe due to the complexities of Agrokor as a business and the total amount of the debt as well as the large number of creditors, 5.700 of them. This section contains all the news on the process of reaching of a settlement for all the key stakeholders, as well as the latest details and developments.
Statement of the Agrokor’s Extraordinary Administration: the settlement process is on course
03. May 2018.
“Interpretations by some of the creditors according to which it will not be possible to reach the settlement between Agrokor’s creditors in the statutory deadline are factually unfounded. Namely, in the last week’s decision of the High Commercial Court regarding the number of members of the Creditors’ Council and the classification of creditors in groups, the High Commercial Court expressed the view that the reasoning behind the decision of the Commercial Court was not sufficiently clearly specified. Therefore, in the next few days we will again propose to the Commercial Court the number of members of the Creditors’ Council and classify the creditors in groups and explain such a proposal even more clearly.
The Creditors’ Council can be founded as soon as the creditors in each of the groups of creditors select their representatives and there is no shortest statutory deadline for this. As the formation of the Permanent Creditors’ Council is in the interest of the creditors themselves, we expect that they will quickly select their representatives. This would be good for the process, but even if this does not occur, there are no obstacles for reaching the settlement because Article 31. of the Act on the Extraordinary Administration clearly states that the Temporary Creditors’ Council has the same powers, rights and obligations as the Creditors’ Council and it performs the functions of the permanent Council until it is established. Thus, any denial of these rights to the Temporary Creditors’ Council is legally unfounded as there is no reasoning for statements made by Franck that the settlement cannot be reached in the statutory deadline due to the decision of the High Commercial Court. The settlement term sheet that was adopted on 10 April of this year is supported by a majority of creditors necessary for reaching the settlement and, as long as this remains, reaching the settlement is not in question.
The process is on course, there are many interested parties and conflicting interests and the Court has a very active role in it and an increasing amount of workload as the settlement approaches. All these events are to be expected, especially just before the settlement is reached in a process as complex as the Extraordinary Administration proceeding.”