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Belje’s Loss Reached 1.38 Billion Kuna Last Year

Belje reported a loss of 1.38 billion kuna last year, according to data from the revised financial report of the company published on the Zagreb Stock Exchange, which indicates that significant risks in operations arise from obligations under guarantees that Belje provided to Agrokor and its affiliated companies.

Belje’s loss last year amounted to 1.38 billion kuna, which is a significant increase compared to 2016 when the loss was 41.4 million kuna.

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Belje’s total revenues last year amounted to 1.45 billion kuna, which is 11 percent lower than the previous year. This decline was primarily influenced by sales revenues, which amounted to 1.28 billion kuna and decreased by 12 percent.

Total expenses increased by 70 percent, to 2.8 billion kuna.

The report also states that according to the approved settlement, the company recorded guarantees amounting to 1.6 billion kuna according to the distribution established by the EPM model (Entity Priority Model). EPM simply represents a waterfall analysis for determining creditor returns.

Of the total recorded amount of guarantees, 1.3 billion kuna relates to obligations for guarantees incurred before the extraordinary administration, while 299 million kuna relates to guarantees under the roll-up (SPFA) loan contracted by the Extraordinary Administration.

According to the EPM model, an amount of 457 million kuna was allocated to guarantees under the roll-up (SPFA) loan, but the total amount of guarantees is reduced by obligations under the utilized part of the loan, which has not yet been repaid. The status of obligations under the SPFA loan as of June 20 of this year amounted to 158 million kuna.

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Belje has, as stated in the report, recognized in its business books the amount of guarantees determined by the EPM model, while the remaining part of the guarantees is recorded as a potential obligation of the company.

The management report of Belje also states that they expect the planned restructuring of the Agrokor group, and a key part of the restructuring implementation will be the transfer of operations from the current structure to the structure of the new group.

According to the settlement approved by creditors and confirmed by the Commercial Court in Zagreb over Belje, it indicates that there will be a transfer of the business entity and that Belje will not continue to operate on an indefinite basis but through a newly established company, states the management report of Belje for 2017.

According to data from the consolidated report, the Belje group achieved total revenues of 1.46 billion kuna and total expenses of 2.85 billion kuna last year.

The loss incurred in 2017 amounts to 1.39 billion kuna, the report states.