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Dec 22, 2017 17:23 EEST
December 22 (SeeNews) - The newly established association of suppliers of Croatia's ailing concern Agrokor is against a draft debt settlement plan proposed by the concern's extraordinary management, an official of one of the association's member companies told media in Zagreb.
"This is not the direction we are willing to support," Marica Vidakovic, a managerial agent at confectionery producer Kras, said before tearing up a copy of the draft debt settlement plan in front of media on Thursday. "This will be the position of the suppliers," Vidakovic added, following a four hour meeting between the association of suppliers and Agrokor's extraordinary management.
On Wednesday Agrokor said that suppliers and creditors, who have formed a temporary council of creditors of the concern, have endorsed a draft debt settlement plan which foresees a debt-for-equity swap and a partial debt write-off.
However, Vidakovic, who is a member of the council, told media that the council did not vote on the document on Wednesday and that it was only outlined to them. Vidakovic added that the suppliers were familiarised with the details of the draft on Thursday and that it is unacceptable to them.
The plan, made public by Agrokor late on Wednesday, suggests that the 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.
The newly-founded companies will carry a sustainable amount of debt owed by the old companies of Agrokor, while the remainder of the debt which cannot be paid would remain with the old insolvent companies which would be liquidated. A portion of the liabilities and the remaining debt of the old concern would thus be liquidated.
"The creditors’ representatives in the Temporary creditors council gave a green light to the Extraordinary Administration to move forward with the proposal of the settlement plan following the outline of the presented draft," Agrokor said.
Last week, Agrokor suppliers established an association to protect their interests. They said that they want to work out a settlement together with the banks, other creditors and the extraordinary management of Agrokor that will be primarily in their interest.
The founders of the association are confectionery producer Kras, coffee and snacks manufacturer Franck, diversified conglomerate Adris, food producer Podravka, as well as other food and drink producers and trade companies such as Alcagroup, Atlantic, AWT, Badel 1862, TDR, Granolio, Saponia, Vindija, Zito and Mlinar, and insurer Croatia Osiguranje.
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