Croatia's Agrokor signs memo on promissory notes barring creditors from forcible debt collection

Croatia's Agrokor signs memo on promissory notes barring creditors from forcible debt collection Author: Agrokor. License: All rights reserved.

ZAGREB (Croatia), April 19 (SeeNews) - The receiver of Croatia's Agrokor, Ante Ramljak, has signed the final version of a memorandum on the concern's promissory notes which bars creditors from forcibly collecting payments from suppliers until May 31, Agrokor said.

The memorandum defines and regulates the relationship between suppliers and creditors in regard to promissory notes issued by  Agrokor to its suppliers of goods. The document has been sent to 159 suppliers and 31 banks, factoring companies and other financial institutions, the indebted concern said in a statement issued late on Tuesday.

"Under the memorandum, creditors which accede to the document will not enforce the collection of payments until May 31, 2017, or beyond that date provided that a bilateral deal is concluded between the creditor and the supplier", Agrokor explained.

The bilateral deals envisioned by the memorandum include also the postponement of the collection of claims until the completion of emergency receivership in Agrokor.

Within seven days from the signing of the memorandum a seven-member joint task force will be created, consisting of three representative of the creditors, three of the suppliers and a member of Agrokor as the coordinator, the concern said. The task force's aim is to help solve technical and practical issues and to coordinate further cooperation between suppliers, creditors and Agrokor, it added.

On April 10, the government named Ante Ramljak as receiver of Agrokor to lead the restructuring process in Croatia's largest private concern under a new law adopted by the parliament a week earlier. The law, commonly known as 'Lex Agrokor', was drafted by the government in response to financial troubles that emerged recently at the food and retail group.

5 / 5 free articles left
Get more for free. Sign up for Basic subscription
Get full access. Upgrade to Premium subscription