On 25 May, 2018 the Extraordinary Administration of Agrokor published the Draft Settlement Agreement in the Extraordinary Administration Procedure of Agrokor at the website nagodba.agrokor.hr. The document in question elaborates in detail the Term Sheet containing the key structural elements of the settlement signed on 10 April, 2018 by all Members of the Temporary Creditors’ Council, representatives of the Suppliers’ Association and a representative of VTB, and also comprises the indications of the in-principle-agreement achieved in the discussions which continued after that date.
The Draft Settlement Agreement consists of two parts: the preparational basis, setting out the goals and mechanisms of the settlement and the implementation plan, which regulates all procedures regulating the compensation of the creditors and their legal status as well as the activities and steps required in the course of the implementation of the Settlement Agreement.
The document in whole constitutes a detailed overview of the respective positions of the companies subject to the Extraordinary Administration Procedure, the reasons for introducing the procedure and all steps taken over the course of the procedure in order to prepare and adopt a settlement agreement among the creditors. The document also contains an elaborate breakdown of the corporate structure of the new Agrokor Group, the treatment and form of recovery of pre-petition creditors’ claims, the breakdown of the new debt of the new Agrokor Group and its capital structure as well as other details related to the settlement implementation.
Next week Agrokor’s creditors together with the Extraordinary Administration and its advisers will continue their direct mutual discussions and proceed with work on the Draft Settlement Agreement. Furthermore, the Extraordinary Administration is in daily contact with a number of creditors, addressing all of the issues which are still pending.
The work on the pertaining documentation stated in the Draft Settlement Agreement which will be a constituent part of the final version of the Agreement is also under way, with the final wording first to be voted upon by the Creditors’ Council and then by all of Agrokor’s creditors as well.”
