Balkan-style too big to fail set to leave creditors out in cold

But in this Balkan battle, it’s confectioner Kras d.d. that has the edge.

That’s because the Croatian government has intervened to put the interests of almost 5,000 domestic businesses ahead of international financiers in the wake of an aborted Russian-led reorganization and allegations that its books were cooked. It was the latest twist in the saga of the retail chain that went down owing more than 6 billion euros ($6.5 billion). In a little over three months, the value of Agrokor securities evaporated after lenders pulled the plug on its debt-fueled expansion. And now politicians across the region are making sure local interests are protected.