October 30, 2017 / 3:20 PM / a year ago

Croatia's Agrokor viability plan sees double EBITDA in 5 years

ZAGREB, Oct 30 (Reuters) - The viability plan for Croatia’s indebted food group Agrokor envisages its operating profit (EBITDA) to double in five years, a presentation prepared by the company’s crisis management showed on Monday.

The non-consolidated EBITDA is seen at 452 million euros ($524.73 million) in 2021 from 226 million last year. The non-consolidated revenues in 2016 amounted to 6.58 billion euros and are expected to decline five percent in the next five years.

Agrokor, the biggest employer in the Balkans with around 60,000 staff, was brought under state-run crisis management in April this year after suffering a liquidity and debt crisis.

Croatia has selected New York-based AlixPartners as its adviser in restructuring. Agrokor’s overall debt figure, which has yet to be released, amounted to just over 40 billion kuna ($6.17 billion), according to an assessment for late March.

According to the plan, the company will divest its non-core businesses like those in tourism and energy sectors.

The plan sees an agreement on a settlement in the first quarter of next year. The creditors include bondholders, suppliers as well as local and international banks.

Analysts expect the settlement to include a certain writedown on some debt and Moody’s assessed the debt recovery chances at between 35 and 65 percent. ($1 = 0.8614 euros) ($1 = 6.4786 kuna) (Reporting by Igor Ilic, editing by David Evans)

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