ATHENS – The beleaguered jewelry and accessory maker Follie Follie, its assets frozen by a court order after an audit found $1.29 billion missing from an Asian subsidiary, lost a bid for protection from creditors when an Athens First Instance Justice ruled against the company.

That raises the specter of one of Greece’s best-known businesses facing more court challenges for its remaining assets and worth and an unstructured bankruptcy, the business newspaper Naftemporiki said.

With the court ruling, FF Group’s management and legal team must work out an agreement with creditors and seek financing for a restructuring plan. A group representing investors in the country has already filed and received a first injunction ordering a temporary freeze of assets totaling 2.5 million euros ($2.86 million).

Prosecutor Yiannis Dragatsis ordered the freeze because the financial executive sent “falsified data from Asia” which the accountant “approved.” That came after a court rejected an injunction filed by Folli Follie for temporary protection of its assets from creditors.

The company fell into chaos in May after a hedge fund, Quintessential Capital Management, said it was skeptical of the company’s financial statements for last year and that it overstated the number of its outlets.

The asset freeze came just the company, facing closure after an audit said $1.29 billion was missing, was hit with a report it may have given $122 billion through it’s Asian subsidiary to unknown recipients, including a business that may not exist, said Kathimerini.