April 7 (SeeNews) - Croatia's troubled food and retail concern Agrokor said on Friday it has not activated the newly adopted emergency legislation which aims to shield the country's economy from big corporate bankruptcies.
"Agrokor's management has not activated the law regulating extraordinary administration of companies of systemic importance for Croatia. At this moment we can confirm that the provisions of the law are being studied to obtain a complete picture of its use and determine further procedures", the heavily indebted concern said in a statement.
The law, commonly known as 'Lex Agrokor', was passed in parliament on Thursday. It was drafted by Croatia's government in response to financial troubles that emerged recently at the country's biggest private concern.
The law, which could come into immediate effect, allows the government to appoint temporary administrators to lead a restructuring process at the request of the company's creditors or the debtor itself.
Late on Thursday, Croatia's government said that prime minister Andrej Plenkovic met with representatives of Agrokor's largest creditors - Sberbank, VTB Bank, Erste&Steiermarkische, Raiffeisenbank, Privredna banka and Zagrebacka banka. The banks confirmed they are ready to ensure the liquidity of the concern and provide security to suppliers if the law is applied, the government noted.
On Wednesday, Plenkovic told parliament the law was drawn up to protect the country and its economy.
"[...] this is not Lex Agorkor but a law which allows Croatia, its government and a vast majority of its parliament to protect the interests of the Croatian financial system, of its economy, workers and employees of Agrokor, family farms, suppliers and all stakeholders who are currently involved in the processes going on in our largest company,“ Plenkovic said.
The prime minister noted that the law will also protect Croatian taxpayers because it applies to companies which employ 11.5% of the country's workforce and contribute 34.6% of the country's GDP.