Croatia's government said on Tuesday it had met representatives of food producer and retailer Agrokor to discuss efforts to “stabilise its business”.
Zagreb-based Agrokor is the biggest food producer and retailer in the Balkans, employing almost 60,000 people across the region with annual revenue of some 50 billion kuna ($7 billion).
“We have been informed that company is making an effort and considering various options to stabilise its business. We want them to succeed and we will continue closely following the situation,” the government said in a statement, without giving any further details.
Media report that representatives of the Government and Parliament said the State will not bail out the company and that they expect from Agrokor's owner Ivica Todoric to step down as a company director.
Moody's and Standard&Poor's recently cut Agrokor's rating on debt servicing and refinancing risk worries. Moody's flagged accounting transparency concerns.
Given Agrokor's size, some analysts say the government may have to step in, although local media say the government rejected that scenario.
One option could be the sale of some of Agrokor's profitable assets.
Russian banks, such as Sberbank, are among Agrokor's major creditors and their share of its debt matures in early 2018.
Agrokor has repeatedly said in recent weeks that it will keep servicing its financial obligations regularly as before.
