Agrokor Group, in close collaboration with advisors, has determined in preliminary checks that there may be potential errors in the Group’s financial statements, and intends to appoint PricewaterhouseCoopers (PwC) as the auditor for 2016, it was announced on Thursday by Agrokor, which has requested the companies within the group to convene general assemblies.
“The extraordinary commissioner today requested that certain companies within the Group convene their general assemblies. These general assemblies are expected to be held within 15 days from today,” the statement notes, which includes a list of about 40 companies from the group.
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As the purpose of these assemblies, Agrokor cites the adoption of a resolution to appoint PricewaterhouseCoopers d.o.o. as the new statutory auditors for the Group to conduct the audit for the financial year 2016.
“The Group, in close collaboration with its advisors, has determined in preliminary checks that there may be potential errors in the Group’s reports. These checks are currently ongoing. Consequently, the Group requests that stakeholders do not rely on its past financial statements until the checks are completed and the situation is appropriately clarified,” the statement emphasizes.
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It is reiterated that the Group intends to appoint PricewaterhouseCoopers to conduct the audit of the Group’s financial statements for 2016. “This appointment will result in the need to extend the deadline for the publication of the revised financial statements for 2016. The Group expects to issue further announcements on the progress of the initiated processes within the next 30 days,” the statement notes.
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“Agrokor d.d. wishes to draw the attention of all creditors to the fact that due to the moratorium under the Extraordinary Administration Act, the initiation of any enforcement actions, the commencement of legal proceedings, the application of any legal remedies, and the undertaking of similar actions against the Group is expressly prohibited during the extraordinary administration process,” the statement concludes.
The crisis remains ‘alarming’
Agrokor reminds that the company entered the extraordinary administration process in accordance with the Act on the Extraordinary Administration Procedure for Companies of Systemic Importance for the Republic of Croatia, which applies to Agrokor d.d. and its subsidiaries under extraordinary administration, and the attached list contains just over 40 companies.
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Meanwhile, the extraordinary commissioner in Agrokor, Ante Ramljak, was in Sarajevo on Thursday and warned that the crisis in the group remains ‘alarming’, adding that he does not wish to spread false optimism, but will do everything to stabilize operations and settle due debts.
“Since the moment of taking over and managing this company, the situation we found in the group, especially regarding the Croatian part of the group, has been very alarming. It still is today,” Ramljak told reporters after a meeting with the Chairman of the Council of Ministers of Bosnia and Herzegovina, Denis Zvizdić, and representatives of other authorities in Bosnia and Herzegovina, with whom he discussed the operations of Agrokor’s companies in that country and the crisis in the Croatian group.
Ramljak told reporters that he presented the situation in Agrokor to his interlocutors.
He recalled that immediately after his appointment, he stated that it was a race against time for employees, suppliers, and all countries in the region and their citizens.
“That battle is still ongoing. I have no intention of spreading any false optimism, and at this moment I cannot say that the situation has changed in fifteen days,” Ramljak said.
