The state-appointed emergency administration of the indebted food and retail group Agrokor published on May 25 the Draft Settlement Agreement in the crisis administration procedure of Agrokor.

The document elaborates on the agreement signed on April 10 this year by members of the temporary creditors’ council, the representatives of the suppliers, and the representative of the VTB bank, and it also includes indications of the in-principle agreement reached in the discussions continued after April 10, a press release from Agrokor said.

The settlement agreement is comprised of two parts. The preparatory part sets out the goals and mechanisms of the settlement, and the implementation part regulates compensation of the creditors, as well as their legal status and the activities and steps required in the course of the implementation of the agreement.

The document also contains an elaborate breakdown of the corporate structure of the new Agrokor Group, as well as other details related to the settlement implementation, Agrokor said.

According to documents published on Agrokor’s website, the process of restructuring and implementation of the settlement plan will be conducted through a so-called orphan structure (without an owner), namely companies that will be taken over by creditors as part of the settlement plan. A new company, the Dutch-based Aisle Dutch TopCo, will be established as an umbrella holding company by the Dutch administrative foundation Aisle STAK, also to be set up for that purpose.

The creditors will assign their claims, covered by the draft settlement plan, to Aisle Dutch TopCo in exchange for convertible bonds issued by Aisle Dutch TopCo and depositary receipts issued by Aisle STAK for shares to be issued by Aisle Dutch TopCo, and to be held by Aisle STAK. The new group will thus be owned by the creditors.

After the settlement, Agrokor Group will have to be removed from the trade register.

The cost of the emergency administration procedure is estimated at €84 million, including court fees and costs incurred in relation to the emergency administration procedure, including consultancy.

The final exact cost of the emergency administration procedure will be possible to determine or estimate only upon the completion of the procedure.

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