Suppliers to troubled Croatian retailer Agrokor withdraw ultimatum to halt deliveries

Suppliers to troubled Croatian retailer Agrokor withdraw ultimatum to halt deliveries
Agrokor's suppliers have now agreed not to freeze deliveries until their demands are met
By Akin Nazli in Belgrade May 24, 2017

Agrokor’s suppliers decided to halt a previous decision to cut their deliveries after holding a meeting on May 24 with Agrokor’s chief emergency officer Ante Ramljak, Hina reported.

A group of Agrokor suppliers had agreed on May 22 to cut their deliveries to Agrokor Group companies if their demands were not met by May 29. Agrokor is estimated to owe a total of HRK16bn (€2.2bn) to its suppliers. Agrokor’s bank debt payments are currently frozen due to a standstill agreement signed last month with its main lenders.

Ramljak hopes that the standstill agreement on freezing debts to the suppliers and banks will be extended until June 20, the emergency officer said also on May 24.

“We agreed that we will gradually meet our demands in the coming days and we will not stop the supplies during the negotiations,” Marica Vidakovic of Kras, one of Agrokor’s suppliers, said after meeting with Ramljak.

Agrokor’s suppliers plans to hold talks with politicians to clarify the details of Lex Agrokor law when Croatian parliament returns back from its election break after the second round of local polls to be held on June 4, according to Vidakovic. Another group of suppliers will seek to set an agreement with Agrokor’s suppliers, Vidakovic also said.

Croatian Economy Minister Martina Dalic is expected to meet with Agrokor’s suppliers also on May 24. “Talking in terms of ultimatums is not appropriate to Agrokor’s situation nor to the results of the emergency administration,” Dalic said on May 23, according to Hina.

Meanwhile, Ramljak filed a lawsuit against Agrokor’s owner Ivica Todoric together with other board members Ante Todoric and Ivan Crnjac. Ante accused Agrokor’s three board members in question of adding an illegal annex to their employment contracts just before the government took control of the company last month, Poslovni reported on May 22.

Earlier this month, local media speculated that Agrokor urgently needed an additional €400mn cash injection to sustain its operations.

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