June 20 (SeeNews) - Croatian fast moving consumer goods distributor AWT International has entered pre-bankruptcy proceedings after failing to recover debt owed to the company by the country's ailing food-to-retail concern Agorkor, local media reported.
AWT, one of Agrokor's largest suppliers, had its accounts blocked in March after it found itself unable to collect due payments from the concern, which led to big problems for the company, news portal Index.hr reported.
"AWT was unable to settle due recourse liabilities to financial institutions on the basis of unpaid bills of exchange by its principal debtor, Konzum [Agorkor's retailer]", Index.hr reported, citing information from the company.
In April, Agrokor froze the payment of obligations under bills of exchange.
AWT, which employs 480 people, is not the first company to enter pre-bankruptcy proceedings over Agrokor. According to Index.hr alcoholic drinks and confectionery producer Zvecevo has also filed a motion for the launch of proceedings due to its inability to collect debts from the concern.
Index.hr added that coffee and snacks manufacturer Franck is now the most vulnerable as Agrokor, its main customer, owes it hundreds of million of kuna.