ZAGREB May 29 Croatia's heavily indebted food
producer and retailer Agrokor expects to complete
talks with creditors on a new loan soon, the company's crisis
manager said on Monday.
Agrokor, the biggest employer in the Balkans with some
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 ($6.09 billion) at the end of March.
The firm received an initial cash injection worth 80 million
euros ($89.34 million) in mid-April to keep the business
running. A new injection is expected to be worth up to 350
"We're at the end of talks on a new loan for Agrokor. You
can soon expect to be given a concrete figure and names of the
creditors which include both local and foreign banks," Ante
Ramljak, the state-appointed crisis manager, told reporters.
Ramljak, who will steer the 15-month restructuring, did not
give a precise date.
Sources in Agrokor said the loan could be agreed this week.
Ramljak said creditors showed interest in providing more
funds for the new loan than needed by Agrokor.
"All the creditors are offered a roll-up option. It means
that for each kuna offered as a new loan the creditors will be
granted a senior status for each kuna or less from previous
funding," Ramljak said after talks with Russia's Sberbank
, a top creditor which was invited to participate in
the new loan.
"We've yet to fine tune what proportion of an old loan would
be granted a senior status if fresh funds are provided," he
($1 = 6.6300 kuna)
($1 = 0.8955 euros)
(Reporting by Igor Ilic; Editing by Edmund Blair)