Agrokor refuting media allegations on financial problems – Investors worried over EUR 3.4 billion debt

A drop in rating and increasingly more frequent allegations that Croatia’s Agrokor is experiencing serious problems have resulted in the company’s press release claiming that they are “strong and stable” and that they are able to meet all the financial obligations in the coming period.

Agrokor is a stable and strong regional company and can meet all its financial obligations in the period to come, the company responded to the Hina agency.

The Croatian media earlier wrote that the year 2018 is crucial to the company, because most of its EUR 3.4 billion debt is due in 2018, which has caused great worry among the investors. The Croatian Minister of Finance Zdravko Maric, who was Agrokor’s executive president before going into politics, also reacted by saying that he believed that the company is in a good condition.

– I am familiar with the state of the company, as I used to work there – Maric claims.

Agrokor has clearly indicated that there are no risks regarding the settling of liabilities in the foreseeable future, but it is certain that the lowering of the credit rating has left consequences.

The Croatian Prime Minister Andrej Plenkovic also commented on Agrokor’s operations, following a range of allegations in the Croatian media claiming that the company is facing serious trouble. He said that he believed that people from Agrokor’s corporate management were taking care of all aspects of rational business and that the solution regarding the financing would be found.

– Agrokor is the largest Croatian company and we will certainly follow everything that’s going on there – Plenkovic said.

The announcement of bankruptcy appeared following the failure to realize a single credit, which led to a drop in the company’s rating. Furthermore, the agency Moody’s lowered Agrokor’s credit rating, which led to lower results than expected and the constantly increasing debt as well. Many economists believe that Agrokor will find it very hard to control debt repayment following those events, which might lead to new problems. At the same time, Agrokor reported that they had given up on the new credit due to not being satisfied with the conditions.

Not long ago, Slovenian analysts also projected a possible downfall of Agrokor.

The Croatian businessman Ivica Todoric owns store chains Idea, Mercator and Roda in Serbia. He is also the owner of the edible oil factory Dijamant, water factory MG Mivela, and companies Frikom and Kikindski Mlin.

Fortenova grupa d.d.

Ministarstvo finansija Republike Hrvatske Zagreb

Vlada Republike Hrvatske

Moody's Investors Service Inc. New York

Poslovni sistem Mercator d.d. Ljubljana

Frikom d.o.o. Beograd

Kikindski Mlin Kikinda

Dijamant d.o.o. Zrenjanin

Agrokor

Ivica Todoric

Ministry of Finance of Croatia

Zdravko Maric

Andrej Plenkovic

Government of Croatia

Moody s

Idea

Mercator

Roda

Dijamant

MG Mivela

Frikom

Kikindski Mlin