Croatia's Agrokor to start paying out 'old' debt to 2,100 small suppliers Thursday

Croatia's Agrokor to start paying out 'old' debt to 2,100 small suppliers Thursday Author: Agrokor. License: All rights reserved.

ZAGREB (Croatia), July 26 (SeeNews) - Croatia's ailing food and retail concern Agrokor said on Wednesday it will begin paying out 'old' debt to 2,100 small suppliers on Thursday, having allocated 132 million kuna ($20.7 million/17.8 million euro) for the purpose.

Agrokor will begin repaying in full debt incurred before the extraordinary administration process was initiated at the concern in April, to family owned agricultural producers, small entrepreneurs and micro-suppliers who have registered their claims, Agrokor said in a statement following a meeting of its temporary creditors’ council.

The repayments will be made over the next four weeks.

"Large suppliers and other creditors have shown solidarity with the small suppliers, and based on this decision the debt towards solely this group of creditors will be paid in full," Agrokor noted.

Agrokor earlier allocated a total of 150 million euro ($174.4 million) for the purpose of payment of 'old' debt to all Agrokor suppliers. Out of the total  sum 30 million euro was reserved for payment of debt owed to family-owned agricultural firms, small entrepreneurs and micro-suppliers of Agrokor companies.

The payment of a portion of the 'old' debt towards all other suppliers will be decided at the meeting of the temporary creditors’ council planned for the second half of August, Agrokor said.

(1 euro=7.41284 kuna)

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