Croatia`s parliament has adopted an emergency law to protect the economy from large company failures after the country`s biggest private-owned firm accumulated huge debts.
Agrokor, the largest private retailer and food producer in the Balkans, has struggled to pay suppliers and creditors after building up $6.5 billion (6 billion euros) in debt, or six times its equity.
The emergency law allows the state to appoint an executive to lead a restructuring process if debtors and creditors demand it.
Agrokor has reached a deal with its lenders, including Russia`s Sberbank and VTB banks, to get an unspecified cash injection and temporary freeze on debt repayments. A restructuring expert was appointed to try to rescue the company.
The vote in parliament was 83 for the emergency law, 46 against and two abstentions.
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