In Croatia, the Forten group came alive with the introduction of a settlement agreement with Agrokor creditors. A healthy part of the largest Croatian company will go under Fortenova, while the poor will stay on Agrokor, which will eventually be switched off. The remains of the old Agrokor Mercator remain.
The Fortenova Group has started formally since today, and it is reported by Croatia Agrokor. They also presented a new corporate image of a new green umbrella company (unlike Red Agrokor).
The Forten group will transfer Agrokor creditor claims and business processes. The largest owners of the new company are Russian banks Sberbank (39.2 percent) and VTB (7.5 percent) and bond holders (25 percent), most of which are US financial reserves.
The settlement also includes additional provision allowing Sberbank to exchange 18% of the largest Slovenian retailer Mercator for shares of the new company. If the settlement supplement is implemented, Sberbank will have an additional proportion of 1.6% in Fortenova, with the current 39.2%.
Today, 77 Agrokor companies in Croatia will operate the agreement with creditors. 45 insolvent companies have incorporated water into a new company through their mirror companies, which will add the word plus to their name. 32 Agrokor solvent companies in Croatia will also be transferred to the Forten group.
The assets and poles in 82 companies from the Agrokor structure in Slovenia, Serbia, Bosnia and Herzegovina and other countries, including the largest Mercator, will be transferred to the new company. In accordance with the legislation of these countries the second stage after the procedure in Croatia came to an end.
Meanwhile, the original insolvent companies will join the current Agrokor, which will be removed from the court register after the end of the extraordinary administration's work. The work of the remarkable administration, which began on April 10, 2017, will end after transferring all Agrokor assets to the Forten Group.
For the time being, Mercator remains on the old Agrokor
For the old Agrokor, Mercator remains so. In terms of his fate, a Special Attorney of the Croatia Government for Agrokor Fabris Perusko in a series of recent talks for Slovenian media, he reiterated in Zagreb that he wanted to transfer him from Agrokor to healthier Fortenovo as soon as possible, as this is also important to suppliers, workers and the whole economy of Slovenia.
The transfer has its own dynamics, which depend on Slovenia legislation, which must be agreed by all Mercator creditor banks. Negotiations with banks are expected to continue and will continue during the next few weeks, with some banks suspicious about Perušek words. The next steps for the transfer of Mercator shares are to approve the Slovenian Competition Protection Agency and resolve the issue of minority interests. In the worst case scenario, Mercator could be left on the old Agrokor, Perusko said.
He will also take over today after chief executive Fortenova. On Tuesday, eight regular non-executive members of the Group management board will be confirmed.
Fortenova's management has a slightly healthier business base than Agrokor, but the debt is also putting pressure on a company's operations to upgrade which will start operations on the debt limit. This will equate to between 1.4 and 1.5 billion euros. Mercator's debt equates to 650 million euros.