April 6 (SeeNews) - The largest creditors of Croatia's troubled concern Agrokor intend to fund its operational cash needs on the condition that this funding will enjoy priority status under the 'Lex Agrokor' bill just approved in parliament, the company said on Thursday.
VTB, Sberbank, Erste&Steiermaerkische Bank, Privredna banka Zagreb, the local unit of Austria's Raiffeisenbank and Zagrebacka Banka, will continue to support the operational continuation of the group and all of the efforts particularly of its employees and suppliers during this period of high uncertainty, the company said in a statement, quoting its chief restructuring officer, Antonio Alvarez III.
Alvarez noted that the banks' financial commitment is subject to the final credit committee approvals of each institution, which is currently in expedited process.
"They along with their advisors are working very closely with my team and advisors round the clock, and the Company is continuing to consider all available options", he added.
Earlier on Thursday, Croatia's parliament passed emergency legislation, commonly known as 'Lex Agorkor', aiming to shield the country's economy from big corporate bankruptcies by appointing extraordinary administration in companies of systemic importance to lead a restructuring process at the request of the company's creditors or the debtor itself.
In a bid to provide security to creditors looking to fund Agrokor, the law says that following the activation of 'Lex Agrokor', the first creditor that offers a loan to the company gets priority in the collection of receivables in case of a potential bankruptcy.