The temporary creditors' council of Croatian conglomerate Agrokor has decided to recapitalise the Konzum retail chain in Bosnia and Herzegovina.
The company announced that it will make a payment of €120 million to settle old debts to suppliers of Agrokor companies that have registered their claims. Payments will start next week, and a maximum amount of €150 million has been allocated for the purpose of debt repayment.
The operation will be done in a way that Agrokor companies in Bosnia and Herzegovina, namely Ledo Čitluk and Sarajevski Kiseljak, would transform the claims they have towards Konzum Sarajevo in the amount of €34.6 million into ownership of Konzum shares.
Agrokor will also provide a €15 million loan to Konzum Sarajevo.
The new developments will allow Agrokor to return the Mercator brand to Bosnia and Herzegovina by taking over 83 stores from Konzum, while Konzum will continue to operate the remaining 173 stores.
The funds provided by the loan, as well as the funds obtained by selling inventory that Konzum Sarajevo has in the 83 outlets it rents from Mercator Bosnia and Herzegovina, will be used to repay a portion of the Konzum Sarajevo debt towards suppliers.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine