April 10 (SeeNews) - Croatia's government has named financial and economic expert Ante Ramljak as receiver of troubled food and retail concern Agrokor, the prime minister said on Monday.
"This is a political decision that will stabilise the current economic situation in Croatia", Andrej Plenkovic said during an extraordinary session of the government aired on the government website. "It will ensure Agorkor's regular operations and debt repayment to suppliers".
Ante Ramljak was CEO of the Croatian branch of investment consultants CAIB from 1997 to 2007. In 2007, he was employed at local Quaestus, a company for alternative asset management, before in 2012 becoming a member of the management board of the energy department at the Centre for Monitoring Energy Sector Business Activities and Investments. He is currently partner at Texo Management consultancy.
"The battle for Agrokor is a battle for its employees, suppliers, creditors and it is important that this situation does not spill over to the entire economy", Ramljak said at a press conference following the government session aired live on broadcaster HRT.
Ramljak will head the restructuring process in Agrokor under the law on emergency receivership in systemically important companies adopted by the parliament last Thursday and activated a day later.
The law, commonly known as 'Lex Agrokor', was drafted by Croatia's government in response to financial troubles that emerged recently at the country's biggest private concern.
It allows the government to appoint temporary administrators to lead a restructuring process in distressed companies for a a period of up to 15 months, during which the repayment of company debt is put on hold.
Prime minister Plenkovic is due to meet with Agrokor's suppliers at 10 am CET on Monday and with creditors at noontime to discuss a new loan and the repayment of debt to suppliers who have threatened to cut deliveries.