Tedeschi: Lex Agrokor Places Suppliers Ahead of Financial Institutions and Banks

The CEO of Atlantic Group, Emil Tedeschi, believes that Ante Ramljak, the newly appointed extraordinary commissioner for managing Agrokor, has relevant experience from the financial and real sectors, has the trust of the Croatian Government, and will perform his duties to the satisfaction of all stakeholders.

>>>Biography of Ante Ramljak

When asked whether the money expected from banks will be sufficient, Tedeschi stated that first, it is necessary to discuss the possibilities provided by the law, “which prioritizes the employees of the Agrokor system, the taxes and contributions that the state needs to collect, and then new deliveries, as well as obligations towards fresh capital, which I expect banks to provide.”

“And then the law allows the commissioner to service Agrokor’s obligations to suppliers in the next line of payment, and this is the most important item of this law, which the Parliament adopted last Friday. This means it places the position of suppliers ahead of the position of financial institutions and banks. I think it is a significant achievement that the Croatian Government proposed such a measure, and that the Parliament accepted it,” Tedeschi asserted.

>>>Ramljak: A Battle for Employees, Suppliers, and Creditors of Agrokor Lies Ahead

He emphasized that many small, medium, and large suppliers are in extremely poor financial and liquidity positions, and therefore, “the application of the law is necessary from today.” Tedeschi also mentioned that Atlantic Group is in an excellent position and can withstand everything that is happening from a liquidity perspective.

“We may be the largest supplier to Agrokor, including its subsidiaries and dependent companies abroad, but we have not entered into any financial arrangements with Agrokor; we have only supplied goods. We are quite strict in collecting payment for those goods, and today we do not have financial challenges, which does not mean that this situation does not affect us. If a large part of the ecosystem of the Croatian economy and beyond in the region is not functioning, then the position of those who are significantly better off is not exactly happy, and we cannot be satisfied because the situation is difficult and concerning,” he said.

>>>‘Everything Will Be Fine’: Suppliers Satisfied with Ramljak, Expect Settlement of Claims

In his opinion, the law was the only option for saving Agrokor, given that banks, suppliers, and Agrokor’s management have not been able to find a quality solution in the last month. “I am proud of the Croatian Government for having the wisdom to pass a law that allows old obligations of Agrokor to suppliers to be placed ahead of the interests of banks and financial institutions. The state of the economy and the concern of the Croatian Government for business entities, primarily the concern for producers and traders, is paramount, and I think that is good,” concluded Tedeschi.