Croatian food group Agrokor, which is struggling to resolve major debt problems, said on Sunday it was working on a new business model aimed at protecting employees, suppliers and other partners. Agrokor, the biggest Croatian private company and the biggest food producer and retailer in the Balkans, came under pressure from investors and the Zagreb government to clear up its debt problems, which could destabilise the local economy.
"Management, together with key investors, works on a new business model which will protect interests of all the stakeholders, primarily taking care about employees, suppliers and partners ... The chosen model will be presented soon," Agrokor said in a statement. It also said that the statement was prompted by inaccurate information about the company's position that have appeared in media in recent days.
Agrokor employs nearly 60,000 people across the Balkans. It annual revenue of 50 billion kuna ($7.25 billion) in 2015, around 15 percent of Croatia's gross domestic product. It is not listed, but some of the companies it owns are traded on the Zagreb exchange. According to the latest data, from last September, its debt amounted to 45 billion kuna against capital of around 7.5 billion kuna. A major portion of that debt, some 500 million euros ($537.05 million), will mature in early 2018.
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