The Slovenia Times

Supervisors clear Mercator-Agrokor operations


In a press release published via the Ljubljana Stock Exchange, Mercator said that on reviewing extensive documentation, the supervisory board established that Mercator's operations had been correct and its business interests unharmed.

The board reviewed a report on Mercator's purchasing policy and marketing and investment contracts with third-party service providers.

"Based on relevant information from all reports, especially reports from Deloitte and Ernst&Young, the supervisory board concluded there are no irregularities in this respect," reads the release.

The board approved the proposal by Mercator chairman Tomislav Čizmić to hire one of the big four audit firms or any other renowned international consultant firms to establish additional oversight of relationships between Mercator affiliates and Agrokor affiliates which are not part of the Mercator Group.

The supervisory board instructed the management to immediately explore all options for internal settlement of mutual receivables and payables between Mercator Group companies and Agrokor Group companies which are not part of Mercator Group, as soon as possible.

The supervisors were also briefed on a report on the management's activities designed to secure all interests of the company and Mercator Group regarding developments at Agrokor.

"The chairman and the management have been leading active dialogue with all the company's stakeholders, that is creditor banks, suppliers, employees, social partners and the Slovenian government."

The release also said that the supervisory board was acquainted with the fact that the management had obtained consent from a majority of creditor banks not to apply the cross-default clause.

The consent means that Mercator's debts which have not yet reached maturity will not fall due for immediate payment despite Agrokor's overdue liabilities.

Chairman Čizmić stated that the company's management supported the Slovenian government's activities for the protection of Mercator's interests.

The government adopted a special bill yesterday allowing it to appoint a crisis manager at Mercator in the event it is determined that the majority owner is diverting funds.

The bill is expected to be passed by parliament this month.

The session today was held in the wake of media allegations that Mercator started buying supplies for Agrokor's other retail chain, Croatian-based Konzum, in Croatia and abroad when Konzum ran into problems with suppliers.


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