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Croatia: Lex Agrokor - Government Intervention at the Eleventh Hour

May 2017 - Finance. Legal Developments by Schönherr.

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Lex Agrokor – behind the scenes

The hottest topic in Croatia right now is the Agrokor situation and the newly enacted Act on Compulsory Administration Procedure in Companies of Systemic Importance for the Republic of Croatia (Zakon o postupku izvanredne uprave u trgovačkim društvima od sistemskog značaja za Republiku Hrvatsku; the "Act"). The Act was immediately nicknamed "Lex Agrokor" because of what appears to be its main purpose.

Besides pre-bankruptcy and bankruptcy procedures, the Act implemented a third new special reorganisation regime for a distressed Croatian company of systemic importance (the "Debtor"), ie a joint stock company (together with its Croatian affiliates where it holds more than 25 %) employing more than 5,000 employees and with balance sheet obligations exceeding some EUR 1 billion. read more...