The main goal of the extraordinary administration is reaching a settlement with respect to all the creditors. In this section you may find more detail on the structure and the summary of key aspects of the settlement, additional clarifications and different service information, as well as information on the rights and obligations of each of the creditors.

Extraordinary trustee addressed the media

Agrokor’s Extraordinary trustee Ante Ramljak said on Thursday after the meeting with Association of suppliers of Agrokor where he presented the draft settlement structure, that the starting positions were being taken today, that a certain group of creditors was not satisfied and that months of talks are ahead of them.

“We see today that the negotiations have begun. Today we have presented the settlement to the Association of suppliers, and I think that these are the starting positions for all of us and there are things that are not acceptable and which will be discussed in the following three to four months. It was expected that a certain group of creditors will not be satisfied.” Ramljak told reporters.

Will you change the things that bother them in this structure?
There are two things that are controversial to suppliers, we will talk about them and discuss to what extent some things can or cannot be changed.

What are these things, they say that creditors in certain companies within the system are in an unequal position?
I do not want to speculate on any individual supplier’s position. The fact is that we have to keep in mind that certain companies and creditors in individual companies must be treated in a completely different way. If this wasn’t so, then the suppliers of other companies that would otherwise have better returns would be unsatisfied. We have to find some middle ground.

Suppliers also announced some actions … .That they will use the strongest weapon.
I think it would be at their expense, not mine. The company is theirs. The company is in the hands of creditors.

So you do not believe there will be a suspension of deliveries of goods?
No, I think that was just harsh words. I do not think that will happen. From the very beginning we are facing such things, then we talk and we try to find a compromise solution. I have repeated several times that there are no winners or losers in this process. In this case we all have to find a compromise and everyone loses.

As for the minority shareholders and the question of whether „there is a cure“ for them or they must lose everything, Ramljak said that the „cure“ might exist but he does not see it. “I think this is the group with the highest risk and therefore they lose the most” he added.

What about companies outside Croatia that did not take part in these guarantees and whether there is a need for them to go through the same mirror companies treatment?
No, their ownership structure, that is their shares, will simply be transferred to a new holding company.

He was required to clarify the model by which different suppliers in different companies have different treatment. „This was not presented yesterday”(in Temporary Creditor’s Council meeting), Vidaković said. How is it possible, for example, that a Konzum supplier will have to write-off 50% and Jamnica supplier only 5%?
These are individual views and individual opinions. We’ll talk further, these are the starting positions. Negotiations have started, you have to realize that everyone is taking their starting position. We have suggested something that one particular group did not like. We’ll see what’s going to happen in the next few months.

Why would there be a dramatically bigger haircut in Konzum than in Jamnica?
We must start from what would happen if the bankruptcies were opened individually. For example, in the bankruptcy proceeding, Konzum’s creditors would get what Konzum could repay from their assets. Jamnica’s creditors would get what they could get from Jamnica’s bankruptcy. We have to start from there. I think that’s fair.

How likely are you to change this company-by-company and claim-by-claim principle and to come up with a compromise solution?
Look, we can do things like this. For example, we can offer to all the suppliers of the entire Agrokor group a total of 100, and then let them agree between themselves whether to distribute it equally. I do not oppose that, but I will not persuade them. They have to agree among themselves whether they will be so solidary, so that someone who might have gotten 50 in a bankruptcy process gives up their share to benefit someone who would get ten.
We’re just administrators, brokers. If the creditors accept some agreement that is reached among themselves, we will all accept it. So, we can give them the total sum, and if they agree to distribute it to all suppliers equally, we will accept it.

Have you talked to other groups of creditors? Did you get support?
We talked with all the groups. I heard Mrs. Vidakovic say that support was not given in the Creditor’s Council yesterday, I guess she meant that we did not vote on it. Voting was not required for the draft resolution, but it was generally agreed to move forward by all members of the Council who were at the meeting.
Today we started to negotiate. They pointed out what they oppose. The advisors presented the draft settlement and the negotiations start.

Since the small shareholders will probably get nothing, and the debt write-off will be great, why is this process better than bankruptcy?
What do you think suppliers would get in that case? The whole purpose is that everyone who has a claim gets a little more than in the case the company went bankrupt.