March 15 (SeeNews) - Croatian retailer and food manufacturer Agrokor said on Wednesday it is exploring all options to stabilise its operations in cooperation with its partners and investors.
"Agrokor and its partners are analysing all possible options to stabilise the company's operations, paying particular attention to employees, suppliers, investors, customers and other partners", it said in a statement made available to SeeNews.
The company noted it has exceptional support from all of its investors who are actively participating in the process of finding a solution.
"We will promptly inform the public of the results", Agrokor added.
The statement comes in the wake of an announcement that representatives of the Croatian government and parliament have held a meeting with Agrokor officials to discuss the company's financial difficulties and the lowering of its credit rating.
The government is thoroughly acquainted with the situation in Agrokor and recognises the company's importance for the Croatian economy, the government said in a statement late on Tuesday.
Local media are speculating the meeting was actually held late at night some 10 days ago and was intended to be kept secret.
The government didn't comment on the speculation. It, however, failed to disclose the date and time of the meeting, but reiterated its support for Agrokor's management.
"We have been informed the company is making an effort and is considering different options to stabilise its operations. We want it to succeed and will continue to follow the situation closely", the government noted.
It is not immediately clear whether the government is considering helping Agrokor by implementing the bailout scenario, for which it would need the approval of the European Commission. In order to make sure no company is given an unfair advantage, the Commission generally prohibits state aid unless it is justified by reasons of general economic development.
Local media also reported earlier this week that Agrokor officials have met with representatives of Russia's Sberbank, one of its major creditors. On Wednesday, Sberbank's Zagreb office told news agency Hina that it is in direct communication with Agrokor, but refused to disclose any further details.
Agrokor's problems seem to have boiled over at the end of February when Moody's Investor Services said it has changed its outlook on the company from stable to negative, after in January it downgraded the company's corporate family rating (CFR) to B3 from B2.
Standard&Poor's Global Ratings said earlier this month that it has also lowered to 'B-' from 'B' its long-term corporate credit rating on Agrokor, with a negative outlook.
Following Moody's January decision, the company pulled out of a syndicated loan deal it had struck with several international lenders, which sent the price of its bonds on international markets into a downward spiral.
The government said at the time it was monitoring the situation and expected the owner and management of Agrokor to cautiously answer to the challenges faced by the company.
Media have been speculating that Agrokor will need to sell off a number of its affiliates in order to service its obligations, which include a PIK loan it took out in 2014 to fund its acquisition of Slovenia's Mercator.