Crisis management of the indebted Agrokor conglomerate commented on Friday on the Franck company’s observations on the draft settlement agreement in which they said the agreement contained illegal and damaging solutions.

The draft settlement agreement, in line with the law in all its provisions, was published on the Agrokor web site with the purpose of maintaining procedure transparency and timely communication with all the creditors, the management said.

Earlier today, N1 learned that the Franck company sent written observations to Commercial Court on Friday on the draft settlement agreement in the crisis procedure in Agrokor.

Franck, one of Agrokor’s creditors, said the draft settlement agreement contains illegal and damaging solutions to the group’s problems, and that the adoption and confirmation of such a text would cause immense damaging consequences in the long term to the large majority of the group’s creditors, the state budget, and the stability of the financial and economic system. The settlement, as such, presents another systemic risk, Franck said.

“The draft settlement agreement was published as information, not formally submitted to the Court. Therefore, there is no legal basis for taking any kind of legal action by third persons,” the crisis management said.

Crisis manager Fabris Perusko said yesterday that this week the members of the temporary creditors’ council and large creditors spoke on all outstanding issues, and the settlement was ultimately agreed.

“The crisis management and advisors are now working on the final text of the settlement agreement so that it can be given to the temporary creditors’ council for approval,” he had said.

After the final text of the settlement agreement is defined, it needs to be approved by the temporary creditors’ council, after which it will be reviewed by the Commercial Court, and, finally, accepted by the creditors’ association.

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