Sector News

Croatia to sell parts of Agrokor to repay debts

May 15, 2017
Food & Drink

Subsidiaries of the troubled economic giant Agrokor – which is in the throes of a financial crisis – will be sold in order to repay company debts to creditors and suppliers, the state appointed extraordinary manager of the company, Ante Ramljak, told Nova TV on Thursday.

Ramljak explained that Agrokor’s businesses is being divided into four sectors – retail, operative companies in the food industry, agriculture and non-core business.

“Most people work in these first three [sectors] … We’ll probably sell the non-core companies in future and, from that [sum], will reimburse a certain amount of the debt,” he said.

He added that no major layoffs from the first three sectors were expected.

As the company announced that Agrokor’s 19 biggest subsidiaries owe debts exceeding 5.4 billion euros, Ramljak explained that certain companies must be sold to cover this debt, and that Agrokor will cease to exist as a unified group or a holding within a year.

“You have to understand one thing – in 12 months, Agrokor, as it now looks, will not exist as a group. Agrokor holding will not exist,” he concluded, naming some of the more prominent subsidiaries that will continue to work under new ownership.

At the end of his interview, Ramljak also noted that 500 million euros of “undefined debt” could not be accounted for  – once more pointing to assumed irregularities in the company’s business activities over the years.

Croatia’s government named Ramljak Agrokor’s extraordinary manager on April 10 under the terms of a special law, on Procedures for Extraordinary Management in Companies of Systematic Significance for the Republic of Croatia, adopted in parliament on April 6.

Businessman Ivica Todoric, Agrokor’s owner, handed over the company to state control on April 7.

Although technically Todoric still owns the company, management is now in the hands of Ramljak, an experienced figure brought in to consolidate the company’s finances during the crisis management period.

Agrokor’s role in the economy of Croatia is massive, with revenues of 6.5 billion euros in 2015 – almost 16 per cent of Croatia’s total GDP – and around 30,000 employees. Additionally, Agrokor’s suppliers – both small and big – employ another 150,000 people.

It employs another 20,000 people in neighbouring Bosnia, Serbia and Slovenia.

By Sven Milekic

Source: Balkans Insight

comments closed

Related News

March 19, 2023

Kellogg reveals new business names ahead of planned cereal unit spin-off

Food & Drink

The global snacking, international cereal and noodles, plant-based foods and North American frozen breakfast business will be known as Kellanova – home to brands such as Pringles, MorningStar Farms and Nutri-Grain. Kellanova’s portfolio will also encompass cereal brands, including Frosties, Special K, Krave and Coco Pops.

March 19, 2023

Nestlé pilots refillable vending machines in Indonesia

Food & Drink

Nestlé is piloting refillable vending machines for its Milo and Koko Krunch brands as part of its effort to explore solutions that help to reduce the need for disposable packaging. In collaboration with digital start-up Qyos by Algramo, the machines will be available at two retailers in Indonesia during a 4-6 month trial period.

March 19, 2023

Carlsberg appoints new chief executive

Food & Drink

Carlsberg has announced that Jacob Aarup-Andersen will join the company as chief executive officer, replacing Cees ’t Hart, who will retire by the end of Q3 2023. Since 2020, Aarup-Andersen has served as CEO of ISS, a global facility services company that operates in 60 countries.

How can we help you?

We're easy to reach