Peruško: The Creditor Council Will Hire Advisors from McKinsey

The extraordinary commissioner for Agrokor, Fabris Peruško, spoke on Wednesday for N1 about Agrokor and the intention of the Creditor Council to hire the consulting company McKinsey, where he previously worked.

He stated that the agreement signed yesterday is only part of the process, that a methodology has been agreed upon to convert claims into ownership shares, and that key creditors participated in this for key elements of the settlement.

Peruško said that we can expect the company’s value to be between 2.5 and 3 billion euros and that this must be put into the context of debts to external creditors, which are around 7 billion euros. He also stated that he believes Agrokor can be sustainable in this system if creditors write off part of their claims to reduce the debt to a sustainable level for the company’s survival.

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– Operational improvements have been made in the company, and another important element is that the system has become a more predictable partner for its suppliers due to payment hygiene. These two elements have helped the system to function better today.

He stated that Konzum, after reducing the number of stores, is now operating positively, with operational profit, and that he expects the formation of a Permanent Creditor Council by the end of May.

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– The agreement, which is one of the elements of the settlement reached by the creditors, defines that the payment of the marginal debt to suppliers depends on the performance of Konzum. If these plans are realized, then 71 million euros will be paid to suppliers. For each transfer, suppliers will be paid an amount up to a maximum of 80 million euros. If these plans are not realized, then none of us need Konzum. Konzum must achieve these results, and I believe it will. Konzum has several critical elements that have prevented it from achieving its results. This is primarily illiquidity. Another important element that has affected Konzum’s unprofitability is hidden financing of rent. The company would sell its stores for a price above market value, and then that sale would be returned through overpayment of rents, he stated.

Peruško expects the settlement to be confirmed by a two-thirds majority of creditors.

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Speaking about the new company, he said that creditors have agreed to keep the company in its current form, that there will be an operational holding that will manage the entire business, and that all employees will be transferred to the new company.

– Most creditors are banks that are here by chance because they provided loans that could not be repaid. They would be happiest if this had not happened. It is in the creditors’ interest for the future company to be successful in order to recover part of the debt, Peruško stated when asked whether the Russians and the American fund, as the largest creditors, intend to manage the company or sell it to a third party.

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When asked about the advisors in Agrokor, he replied that he plans a briefing for journalists to bring the public closer to this topic because he believes that unnecessary hype is being created around this process. When asked if he would hire advisors from the company where he previously worked, Peruško replied that he would not do it himself, as they are hired by the creditor council and they decide. They will hire advisors from McKinsey, the company where he once worked, Peruško stated.