At today’s press conference, representatives and specialists from the Association of Minority Shareholders presented their view of an alternative solution to the creditor settlement plan for Agrokor d.d. The conference featured Mićo Jurjević, president of the Association of Minority Shareholders, Miroslav Jeličić-Purko, vice president of the Association, Danijel Labaš, secretary of the Association, Boris Ivančić, attorney for the Association, Dr. Mihaela Grubišić Šeba, CFA, reviewer, and Dr. Paško Anić Antić, reviewer.
The creditors believe that the settlement plan will create 12 billion kuna of new money for Agrokor. This will be achieved through the continuation of operations and growth of Agrokor’s companies after the restructuring is completed. This includes financial restructuring. The debt of Agrokor d.d. and Konzum d.d. can be reduced to a reasonable level.
>>> Creditors of Agrokor: ‘Deadline’ is near, our priority is to reach a settlement
– We propose that there be no mirror companies, financial restructuring of Agrokor d.d. and Konzum, the assets are not as claimed. We assert that in our plan, no one will lose, say the minority shareholders of Agrokor, claiming that Ante Ramljak’s settlement plan is illegal.
According to Boris Ivančić, all companies have been declared insolvent, which means they are valued at zero. Shareholders reiterate that the guarantees are disputed and that Croatian rules and laws are applicable to them.
>>> Agrokor: Chronology of the crisis shaking the nation
– The application of guarantees as interpreted by the Extraordinary Administration constitutes illegal action and harm to minority shareholders. Why do creditors respect the limitations of Croatian law, while the Extraordinary Administration does not adhere to Croatian regulations? The companies within the group are not insolvent. All companies are healthy, except for Konzum, which is in the greatest trouble. If the value of the group is zero, then the question arises as to why such an expensive procedure is being conducted if the result is already zero. The restructuring of Agrokor can be done sustainably and legally, says Boris Ivančić, attorney for the Shareholders’ Association.
Mihaela Grubišić Šeba wonders whom it is necessary to restructure – two companies or Konzum, emphasizing that retail has encountered problems due to the acquisition of Mercator.
>>> Creditors: We are focused on the recovery of Agrokor, we support the Extraordinary Administration and the selection of advisors
– That was a wrong business decision, but such things happen. The food sector is doing excellently, and agriculture has just come out of the investment cycle. There is also APH – there are good and bad. In every restructuring process, the bad is resolved and the good is retained, says Grubišić Šeba, noting that 97 percent of all losses, according to PWC’s audit, were generated in Konzum d.d. and Agrokor d.d..
The Association states that they started from the values published on the ZSE in consolidated reports. If the main generators of debt, Agrokor d.d. and Konzum, are left untouched because they are performing well.
>>> Minority Shareholders: Why do Škegro and Ramljak say that the value of shares is zero! This is a criminal offense!
– This is the year 2106, it does not include the roll-up loan, and even if you add it, it does not have much impact as both assets and liabilities increase. Unsecured creditors can convert their 100 percent claims into shares, if they wish, and into other securities. Sberbank is the loudest unsecured creditor and could recover its claims, including the principal, say the Association. They propose that dependent companies should write off their claims against the parent company.
Additionally, the Association proposes that dependent companies should write off their claims against the parent company, and Grubišić Šeba adds that secured creditors remain the only creditors.
>>> At the thematic session on Agrokor, the focus is on the settlement
– Konzum – supplier debt will be converted into equity. Agrokor will do the same, as will all related parties. Then new shares will be listed on the capital market and wait. And everyone will receive their shares and money. If three billion kuna of debt in Konzum is converted, they enter with 25 percent ownership. They have a controlling stake and can place their goods on the shelves. Is it better for them to have a stake in Konzum or in some Dutch holding company, the minority shareholders wonder.
By converting debts into equity stakes, a balance is achieved at the level of Agrokor d.d. and at the level of Konzum, creating a sustainable balance. According to Mihaela Grubišić Šeba, this is the starting point for the continuation of restructuring, which would be completed by 2021, and the companies would be successful.
>>> Todorić: Ramljak uses the creditors’ council to implement the plans of various groups
In this way, resources would remain in Croatia, which is a fair distribution of value.
– The costs of restructuring are evenly distributed. There would be no write-offs for suppliers because the group, based on our analyses, can return its money. The plan is designed so that financial creditors consolidate Agrokor, while suppliers consolidate Konzum. Our plan is aligned with the EU legal acquis, which states that no one can take away capital. Minority shareholders will be able to seek compensation of at least four billion kuna in the future, said Miroslav Jeličić Purko, emphasizing that lex Agrokor was necessary.
The Association states that there are courses that have lasted for decades and that it was necessary to act quickly. The authors of the lex singled out the roll-up and asset transfer. In the end, the Association of Minority Shareholders believes that their plan is indeed feasible and beneficial for all involved in this process.
