May 31 (SeeNews) - The temporary council of creditors of Croatia's ailing concern Agrokor has reached an agreement on the proposed settlement plan and the suppliers of Croatia's ailing Agrokor concern are satisfied with the arrangement, local media reported on Thursday.
The agreement was reached late on Wednesday, news agency Hina quoted a representative of the suppliers in council of creditors, Marica Vidakovic, as saying.
With all the elements negotiated, the council of creditors will vote on the settlement deal on June 8, following which it will be forwarded to the Commercial Court in Zagreb.
Hina quoted Vidakovic as saying that suppliers will receive a payment of 80 million euro ($93.5 million) in border debt, which refers to the debt Agrokor owed to them before the process of crisis management of the troubled concern by the state was launched.
It was also agreed, she noted, that banks will write off 65% of their claims.
The suppliers are satisfied with the agreed deal, Vidakovic said. She added, however, that they have managed to collect only a portion of their claims.
She also said that Sberbank will receive a special deal, whereby the Russian lender will return its 18% share in retailer Mercator to Agrokor and will receive in exchange a larger stake in the new Agrokor.
Agrokor revealed last week that the restructuring process and the implementation of the settlement plan will be conducted through the so called orphan structure from the outset, i.e. a set of corporate vehicles to be taken over by the impaired creditors as part of the settlement.
A new Dutch limited liability company, Aisle Dutch TopCo, will be established as the top holding company by Dutch administrative foundation Aisle STAK.
Aisle Dutch TopCo will wholly own another Dutch limited liability company, Aisle Dutch HoldCo, while the latter will wholly own a Croatian joint stock company, Aisle HoldCo. Aisle HoldCo will wholly own a number of Croatian resident limited liability companies that will eventually contain the operating assets and liabilities of the new group, i.e. the new Croatian subsidiaries.
Creditors will assign their claims to Aisle Dutch TopCo and in exchange they will receive convertible bonds issued by Aisle Dutch TopCo and depository receipts issued by Aisle STAK for shares to be issued by Aisle Dutch TopCo, and to be held by Aisle STAK. Consequently, the new group will be owned by creditors.
The settlement plan must be submitted to the Commercial Court in Zagreb by July 10, 2018 at the latest. The court has the final say on the plan.
($=0.855322 euro)