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ZAGREB (Croatia), December 21 (SeeNews) - The Zagreb Stock Exchange (ZSE) temporarily suspended from trading eight companies of troubled food-to-retail concern Agrokor until circumstances surrounding a debt settlement plan are made public, the companies said on Thursday.
The shares of frozen food producer Ledo [ZSE:LEDO-R-A], food company Belje [ZSE:BLJE-R-A], meat processing company PIK-Vinkovci [ZSE:PIVK-R-A], news stand operator Tisak [ZSE:TISK-R-A], agricultural conglomerate Vupik [ZSE:VPIK-R-A], mayonnaise and margarine maker Zvijezda [ZSE:ZVZD-R-A], soft drinks and water bottling co Jamnica [ZSE:JMNC-R-A] and wholesaler Zitnjak [ZSE:ZTNJ-R-A], have been suspended from trading temporarily, all eight companies said in separate bourse filings.
The ZSE said it made the decision based on reports which suggest that a new Agrokor will be formed, with entirely new mirrored units. These circumstances could greatly affect the companies' share prices, it said.
"A situation has arisen in which it is necessary to protect investors by halting the trade of shares of the companies in question until the public is fully and accurately informed about the circumstances," ZSE noted.
Agrokor said late on Wednesday that its suppliers and creditors have endorsed a draft debt settlement plan which foresees a debt-for-equity swap and a partial debt write-off.
Under the plan, presented to the council of creditors by Agrokor trustee Ante Ramljak, creditors will take full control of a new holding company and its units, to which the assets of the sound segments of the Agrokor group will be transferred to, the concern said.
This has prompted media reports which suggest a new Ledo, Jamnica, Belje and other companies will be formed, stripping the existing shareholders of their investments.
The ZSE concluded that trading in the shares of the eight companies companies will be reinstated once investors have the necessary information to make investment decisions.