September 5 (SeeNews) - Several subsidiaries of Croatia's ailing food-to-retail concern Agrokor said on Tuesday they have signed a pledge agreement for a number of real estate properties with Hong Kong-based security claimant Madison Pacific Trust Limited.
The agreement was signed to create a security interest in favour of Madison Pacific Trust Limited for a loan extended to Agrokor on June 8, 2017, the subsidiaries said in separate filings with the Zagreb Stock Exchange.
The agreement constitutes pledging rights for Madison Pacific on properties of frozen food producer Ledo [ZSE:LEDO-R-A], food company Belje [ZSE:BLJE-R-A], meat processing company PIK-Vinkovci [ZSE:PIVK-R-A], agricultural conglomerate Vupik [ZSE:VPIK-R-A], mayonnaise and margarine maker Zvijezda [ZSE:ZVZD-R-A] and soft drinks and water bottling company Jamnica [ZSE:JMNC-R-A].
In June, those subsidiaries of Agrokor said they would act as guarantors and co-debtors on a 480 million euro ($570.9 million) loan deal the troubled concern had arranged with members of the ad-hoc group of holders of its 2019 and 2020 senior bonds.
The proceeds from the loan enabled Ledo to stabilise its operations, solve liquidity problems and prepare for the summer season, the frozen food producer said.