Tedeschi: The Crisis in Agrokor Sublimates the Entire Problem of Croatian Society

The owner and CEO of Atlantic Group, Emil Tedeschi, on Wednesday described the crisis in Agrokor as the largest social crisis since the war in 1991, emphasizing that he does not consider the audit report to be decisive, but rather that it will serve as a foundation for the business community to see where the concern truly stands today.

“The crisis in Agrokor is the largest social crisis since the ’91 war and it is extremely complex,” Tedeschi assessed on the sidelines of a press conference presenting the initiative “Diversity Policy.”

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As he pointed out, this is not only about an economic and management crisis but also about a crisis of morals and ethics, understanding the functioning of public administration, private companies, and society as a whole.

“I believe that the crisis in Agrokor sublimates the entire problem of Croatian society and regional societies as a whole,” he said, adding that he does not think the audit firm’s report on Agrokor’s consolidated financial statements will be decisive. It will, he noted, certainly serve as a basis for quality discussions and reduce speculation about what led to the crisis in the concern, and as a document, it will help the business community see where Agrokor truly stands today.

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“I do not believe that this document (the audit report) is ‘do or die’. I want to believe that Agrokor has passed the point of crisis when it was on the brink of collapse and that this government and this law (on extraordinary administration) adopted by the Croatian Parliament as the highest legislative body in the country will allow this crisis to be mitigated, that employees in the vast majority will retain their jobs, that suppliers of goods and services will be paid – the small ones – everything, and the larger ones the vast majority of their old claims, and that financial institutions will manage to protect at least part of their exposure to Agrokor,” he stated.

He holds the management of the concern, led by Ivica Todorić, primarily responsible for the crisis in the largest private company in the region, which led to the situation where the concern had to seek state assistance.

Reflecting on what he described as blog disputes and media speculation, he considers them primarily disrespectful. “Passing the ball (of responsibility) to anyone else, to the financial community, to suppliers, this or that government, I consider inappropriate,” Tedeschi emphasized, adding, however, that he believes that under the Constitution, everyone has the right to seek protection of their rights.

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In response to a journalist’s question about whether Atlantic Group is interested in acquiring parts of Agrokor, Tedeschi said that it is always a question of “what, under what conditions, and at what price.”

“As a responsible management of a system that has nearly 6,000 employees and generates 5.5 billion kuna in total revenue, we are looking at potential opportunities in the food and beverage and distribution segments. Anything else would be irresponsible, as there is currently no process to which I could refer. When a process occurs, if Atlantic has an interest, then it will be clear,” Tedeschi stated, adding that when he is asked that, it is as if they are asking him if he is interested in buying parts of Nestlé, Unilever, etc., whose business segments are interesting to them, but nothing is known about the conditions.