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Croatian retail giant Agrokor under state supervision, only bread to be supplied

Staff Writer |
Agrokor reported that its founder and head Ivica Todoric launched a request for activation of "Lex Todoric," the new law aimed to save important companies, as the Croatian government calls it.

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"Management of Agrokor, with me at the helm, launched the process of activation of the Law on the extraordinary administration in companies of systemic importance for the Republic of Croatia," Todoric said.

"The mentioned decisions are taken in the belief that it is in the best interest of each individual employee, partners, suppliers, all other stakeholders and the overall economy.

"We sincerely thank all the employees, close associates and partners with whom I built the most important company in the history of the Croatia."

At the same time, it was confirmed that suppliers will stop delivering goods to Agrokor.

"Right now we are waiting for developments around the potential activation of the Law on the extraordinary administration in companies of systemic importance for the Republic of Croatia.

"Starting tomorrow, suspension of delivery of goods starts, with the exception of fresh bread, which will last until the agreement with the banks is reached.

"We continue to actively monitor the further development of the situation so we can make decisions in the interests of 80,000 workers and subcontractors related to Croatian producers and suppliers," reads the official statement of the Coordination of manufacturers and suppliers of Agrokor.

With the new law in place, all proposals for bankruptcy proceedings shall be repealed. Also, all claims from suppliers will be frozen and they effectively have no way to get their money.

It is not clear what the role of the CRO, Antonio Alvarez III, will be. He was appointed to lead the concern’s restructuring process following the initialing of a standstill agreement between Agrokor and its six largest debtors, which promised to refrain from forcibly seeking payment of money owed to them during the defined period.

The standstill arrangement was essential in preventing the bankruptcy of Agrokor.

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