{"id":562,"date":"2018-05-02T09:53:08","date_gmt":"2018-05-02T09:53:08","guid":{"rendered":"https:\/\/hrbusinessmonitor.eu\/?p=562"},"modified":"2018-05-25T19:23:39","modified_gmt":"2018-05-25T19:23:39","slug":"franck-successfully-challenges-agrokor-special-administration","status":"publish","type":"post","link":"https:\/\/hrbusinessmonitor.eu\/index.php\/2018\/05\/02\/franck-successfully-challenges-agrokor-special-administration\/","title":{"rendered":"Franck Successfully Challenges Agrokor Special Administration"},"content":{"rendered":"

\"\"Almost all media in Croatia carry the HINA report<\/a> today that The High Commercial Court in Zagreb<\/a> decided on 05 April to grant appeals by Franck and nine other domestic and international creditors, and annul the decision of the Basic Commercial Court in Zagreb on formation of the Board of Creditors. This decision was made public on 27 April, 2018, just before the long holiday weekend. (Comment: this also means the decision was known to Special Administrator Peru\u0161ko, and should have been known to the Government, when they were announcing a deal with the creditors on April 10, 2018.)
\nFranck warned it is unlikely that the Board of Creditors would be formed by the end of the Special Administration which expires on 10 July this year. This is because the Law foresees a 90 day period from the day of publication of a call to creditors, for formation of the board. (C. The time remaining is 68 days from today, but would have been within the limit if action was taken on April 05.)
\nThe HCC annulled the decision of the Basic Court of 26 January, establishing the Board of Creditors representing five groups. It also ordered the Special Administrator to deliver all records of meetings of the Interim Board of Creditors held after 23 January, 2018, along with annexes to the \u201croll-up\u201d super-senior loan arrangement, including all letters of intent, protection mechanisms, financing documents, confidentiality agreements with members of the Interim Board of Creditors, the SOP on use of information, and, most importantly, specifics of payments to individual creditors in order to weigh the voting rights when deciding on the final agreement. Franck announced that the HCC also ordered the Special Administrator to appoint a new member of the Board if all small suppliers have been paid.
\nThe HCC also went back to the Art. 9 of the Law to declare that the \u201cinterim board of creditors is not a body in the process of special administration\u201d, so Franck concluded that this body cannot perform functions it was appointed for. Therefore Franck does not grant permission to its members to decide on the final agreement in parts related to Franck claims.
\nAccording to Franck, \u201cthe agreement between the company and the creditors can only be reached on the basis of Art. 43 of the Law. If the agreement is not reached by the board of creditors elected by the creditors themselves, but by an interim board selected by the previous Administrator, than such an agreement cannot be seen as legal or constitutional, and Franck will have no choice but to consider members of the Interim Board personally liable for damages it may suffer through such proceedings\u201d.
\nAs a reminder, the BCC in Zagreb granted Mr Ramljak\u2019s petition in January deciding that the Permanent Board of Creditors will have five members representing five groups of creditors (A \u2013 creditors with separate satisfaction rights; B \u2013 bond holders; C \u2013 creditors with secured claims who took part in the roll-up agreement; D \u2013 creditors with secured claims who did not participate in the roll-up agreement; E \u2013 all other creditors with unsecured claims). An estimated 10 or so appeals were made to this decision, including by Franck, Addiko Bank, Euroherc, OTP Bank, Splitska Bank, Vives Investment, Talal Springs, Ben Oldman Special Situations Fund, Banque Pictet&Cie, and Sberbank of Russia. Most of the appeals are related to the number of members of the Board of Creditors, and OTP and Splitska appealed the creditor sorting decision allegedly placing them in wrong groups of creditors.<\/p>\n","protected":false},"excerpt":{"rendered":"

Almost all media in Croatia carry the HINA report today that The High Commercial Court in Zagreb decided on 05 April to grant appeals by Franck and nine other domestic and international creditors, and annul the decision of the Basic Commercial Court in Zagreb on formation of the Board of Creditors. This decision was made […]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/hrbusinessmonitor.eu\/index.php\/wp-json\/wp\/v2\/posts\/562"}],"collection":[{"href":"https:\/\/hrbusinessmonitor.eu\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hrbusinessmonitor.eu\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hrbusinessmonitor.eu\/index.php\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/hrbusinessmonitor.eu\/index.php\/wp-json\/wp\/v2\/comments?post=562"}],"version-history":[{"count":7,"href":"https:\/\/hrbusinessmonitor.eu\/index.php\/wp-json\/wp\/v2\/posts\/562\/revisions"}],"predecessor-version":[{"id":600,"href":"https:\/\/hrbusinessmonitor.eu\/index.php\/wp-json\/wp\/v2\/posts\/562\/revisions\/600"}],"wp:attachment":[{"href":"https:\/\/hrbusinessmonitor.eu\/index.php\/wp-json\/wp\/v2\/media?parent=562"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hrbusinessmonitor.eu\/index.php\/wp-json\/wp\/v2\/categories?post=562"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hrbusinessmonitor.eu\/index.php\/wp-json\/wp\/v2\/tags?post=562"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}