‘Grandiose Illusion’ Agrokor is Sberbank’s Largest International Fiasco – Ruspress

The Russian agency Ruspress claims on its portal on Monday that Agrokor’s debt to Sberbank is the result of the “stubbornness and shortsightedness” of the leaders of that credit institution, Herman Gref, and that Agrokor is Sberbank’s largest “international fiasco”.

In an authored article by the agency, it is assessed that “behind the attractive facade of Agrokor, there was evidently a grandiose illusion, as Agrokor’s business reports were falsified,” and “when the company found itself on the brink of bankruptcy, the state practically nationalized it and refused to guarantee creditors full repayment of the debt.” Thus, it is assessed that Agrokor became “the largest Sberbank fiasco in the international market”.

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Ruspress particularly highlights the unfavorable aspect of the outcome of the hearing at the London court on February 21 of this year, held to discuss Sberbank’s request to lift the stay of proceedings ordered by Judge Mathews in the decision recognizing the extraordinary administration proceedings in England and Wales concerning Agrokor.

The new extraordinary administration of Agrokor also refers in its monthly report published today to the hearing held in England and Wales on February 21, stating that the judge postponed the decision on the request until the resolution of the appeal process regarding the decision on the recognition of the extraordinary administration proceedings.

“This decision was based on the obligation undertaken by both parties in the recognition proceedings, which is that neither party will take further steps in the arbitrations initiated by Sberbank of Russia against Agrokor d.d. and certain of its affiliated companies until the final decision in the recognition proceedings, which the judge concluded includes resolving the appeals,” states the extraordinary administration of Agrokor.

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It adds that Sberbank has informed the extraordinary administration that it intends to seek the right to appeal from the Court of Appeal and request that this be discussed together with its request for permission to appeal the recognition decision and that the proceedings on these requests be expedited. The extraordinary administration has also filed an objection to the request for permission to appeal against the recognition decision during this period, as stated in the extraordinary administration’s report for the period from February 11 to March 10.

Ruspress: Sberbank judged by one word

Ruspress notes in its article that Sberbank was judged by one formulation, moreover one word from the ruling of the London court from February of this year, which reads: “Until the final decision on the issuance of jurisdiction, Sberbank undertakes not to submit new requests for the return of Agrokor’s debts nor take any actions in the arbitration proceedings.”

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The word “final” has become a problem for the Russian bank, and there the former extraordinary commissioner of Agrokor, Ante Ramljak, with his team outplayed Gref and his lawyers, the article states.

It adds that Agrokor is “interested in delaying lawsuits” and that time works against Sberbank.

Namely, as explained, the restructuring plan for Agrokor must be completed by April 10 at the latest and must be approved by the Creditors’ Council. Meanwhile, creditors whose claims the extraordinary administration has disputed, and Sberbank is one of them, can vote for or against the plan only if their claims are recognized by the court before the voting begins.

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Those who are late, among whom Sberbank will almost certainly be, will therefore only be able to count on some form of compensation, the amount of which could be determined by other creditors, concludes the article from Ruspress.

The information agency Ruspress was founded in 2007. Its founders are its journalists and editors, and as stated in the imprint, it specializes in journalistic investigations, economics, finance, news, politics, and informatization.