Agrokor Settlement Agreement

The negotiation, agreement and implementation of the settlement plan for Agrokor and its subsidiaries took place under the new “Exceptional Management Procedure In Companies of Systemic Importance for the Republic of Croatia” (“the new law”), adopted in March 2017 to deal with the company`s enormous financial difficulties. The settlement plan was approved by the legal majority of creditors at a hearing on 4 July 2018 and confirmed by the Zagreb Commercial Court on 6 July 2018. (London) – International law firm Akin Gump acted as independent international legal counsel for Agrokor d.d., a leading food and retail conglomerate in Croatia, as part of the 1 April 2019 acquisition or transaction agreement. The two-year restructuring of about 6 billion euros of debt was completed after the creditor comparison came into force in April 2019, allowing the new holding company Fortenova Group to take over the operational parts of Agrokor. The debt settlement must be completed before the Commercial Court approves it, Perusko said. Two-thirds of creditors must pass the debt settlement agreement by July 10 to avoid bankruptcy. Akin Gump advised Agrokor in the negotiation and implementation of the colonization plan under the new law. Akin Gump focused on representing the interests of creditors in all issues related to the resolution plan, including the development of structures arising from issues raised by issues of international sanctions and challenges to the claims of international creditors. Akin Gump has also structured and documented the new agreements on equities and convertible bonds. ZAGREB, May 31 (Reuters) – Agrokor, a debt-ridden food group in Croatia, has secured the support of a majority of creditors for a debt repayment contract that transfers all of the company`s assets to a new company owned by creditors, director Fabris Perusko said.

If you want to know how lexology can advance your content marketing strategy, please email enquiries@lexology.com. Perusko said that Russian bank Sberbank, Agrokor`s main creditor, had agreed to exchange an 18.5 percent stake in Mercator – owned by Agrokor – for a stake in the new company. This will allow Sberbank to increase its share as part of the restructuring process. Last week, Agrokor`s crisis management team said Agrokor would be acquired by a new Dutch company owned by its creditors and will be called Aisle Dutch TopCo. Akin Gump Strauss Hauer – Feld LLP is a leading international law firm with more than 900 lawyers in offices in the United States, Europe, Asia and the Middle East. The Akin Gump team was led by james Roome and Liz Osborne in London, partners Sophie Donnithorne-Tait, Axel Vogelmann, Vance Chapman, John Clark, Davina Garrod, Jasper Helder, Counsel Jon Webb, Markus Koppler and Scott Pforetti, with partners Harpreet Hundal, Jake Brown and Rachel Beddoe. With loans worth 1.1 billion euros ($1.3 billion), Sberbank is expected to become the largest single shareholder of the new company. Agrokor, the largest company in the Balkans with 60,000 employees, was placed under public administration in April 2017, crippled by debts accumulated during an ambitious expansion offensive.

“A large number of creditors have reached a compromise in this process and have agreed to write off the debts in order to ensure the survival of the business and the future operation,” Perusko said, without elaborating.