- Wednesday, July 05, 2017 6:26 PM
Zagreb, 5 July 2017 (MIA) - Indebted Croatian food group Agrokor has completed a loan deal agreed last month and will now turn to improving profitability for the benefit of creditors, its crisis manager Ante Ramljak said on Wednesday.
"With this day we're out of the survival period. We have saved the company and there will be no bankruptcy. Now we are entering the next phase which will focus on restructuring and an effort to improve profitability. This second phase will last until final settlement among creditors," Ramljak told reporters.
He said that some 20 local and foreign banks and other financial institutions participated in the loan worth 480 million euros ($544 million), giving a boost to Ramljak's bid to stabilise the Balkans' biggest private sector employer, Reuters reports.
"The effort to boost earnings and profits will bring benefits in terms of higher return to those who have claims towards Agrokor," Ramljak said.
Agrokor earlier said the 15-month loan had an interest rate of 4 percent annually and could be extended to 24 months, and was agreed under a so-called "roll-up" arrangement, meaning that on maturity, Agrokor will settle some of its other debts with the lenders at the same time as repaying the loan.
Agrokor, which has around 60,000 employees, was put under state management in early April after it built up debts that amounted to at least 40.4 billion kuna ($6.2 billion) at the end of March. The company racked up debts during a rapid expansion, notably in Croatia, Slovenia, Bosnia and Serbia.
The state management in Agrokor is envisaged to last up to 15 months. lk/18:24
All Rights Reserved.This material may not be stored, published, broadcast, rewritten or redistributed in any form, except with the prior express permission of Macedonian Information Agency.
- 9:45 PM | Justice Minister Saliji resigns over a case related to a child’s death
Justice Minister Bilen Saliji tendered his resignation late Tuesday due to deteriorating public trus...
- 8:51 PM | Google pledges $300m to support journalism and fight fake news
Google has said it will invest $300m in helping news organisations to fight fake news and grow their...
- 8:34 PM | PM Zaev reaffirms government’s commitment to champion youth policies
The government, along with youth organizations, has confirmed its dedication to build a modern, prog...
- 7:33 PM | UN: Nimetz will meet with FMs Dimitrov and Kotzias on March 30 in Vienna
The United Nations press service has confirmed that the foreign ministers of Macedonia and Greece wi...
- 7:23 PM | Gunman dies after being shot at US school
A gunman who shot and injured two teenage students at a high school in the US state of Maryland was ...