x

Society

Folli Follie Jewelers Faces Creditors Over Bankruptcy Plan

July 29, 2018

ATHENS – Once one of Greece’s most successful domestic and international jewelry houses, the falling Folli Follie is awaiting claims from banks and bondholders after the company resorted to a pre-bankruptcy protection procedure.

The company wants to prevent the seizing of its assets and other actions that could force it to shut down, said Kathimerini, but gained a measure of security the group’s subsidiary in Luxembourg, which issued two bonds for Folli Follie – of 50.4 million euros ($58.83 million) and 102.4 million euros ($119.53 million) – accounting for 28.69 percent of the company’s total obligations.

Banks and creditors are expected to argue that is invalid because the Luxembourg-based firm is a subsidiary of Folli Follie and the creditors were not consulted before the bonds were issued.

In June, with is finances being probed by Greek authorities and suspended from the Athens Stock Exchange (ASE, Folli Follie said it needed time to finish its own audit and promised to fix any “operational failures” and stay alive.

The Greek-owned company, with a presence in 25 countries, is also being sued by the Hellenic Market Commission for failing to provide financial data as demanded, which could result in felony charges if an indictment is brought.

The company’s shares lost 70 percent of their value after irregularities were noted and it was suspended by ASE amid reports inaccurate data had been supplied over its real financial standing which the company denied, although it also backed the suspension.

Local media reported the company was dragging its feet on signing a contract with the audit firm that would investigate its finances at the regulator’s request.

Folli Follie said in a bourse filing the news was “inaccurate” and that it needed time to prepare “such a demanding and complex task,” the Reuters news agency reported.

“We will do everything in our power to provide all required information and we are ready to remedy any operational failures, if any,” the filing said.

A new internal audit committee, a prerequisite for signing the contract with Ernst & Young for the audit, was set up, it added.

Folli is 35 percent owned by the Koutsolioutsos family and had sales of 1.4 billion euros ($1.65 billion) last year, with Asian operations accounting for more than two-thirds of turnover, but where it’s facing fierce competition.

RELATED

ATHENS - Schools of all levels of education will remain closed throughout Attica on Monday and Tuesday, January 24-25, due to extreme weather conditions.

Top Stories

Church

BOSTON – The Holy Synod of the Patriarchate of Alexandria in its recent meeting dealt with the ecclesiastical coup perpetrated by the Patriarchate of Moscow in its canonical jurisdiction, calling it an “immoral invasion and intrusion.

Church

NEW YORK - Some 21 years after it was destroyed in the September 11, 2001 terrorist attacks in the United States that brought down the Twin Towers in New York City, the new St Nicholas Greek Orthodox Church rising in its place is among the most eagerly awaited architectural openings of 2022.

Events

STATEN ISLAND, NY – For yet another year, the community of Holy Trinity-St Nicholas in Staten Island honored couples celebrating 50+ years of marriage with a modest ceremony held at the church immediately following the Divine Liturgy on January 16.

Video

Greece: Heavy Snowfall is Expected on Monday, Schools to Remain Closed in Attica (Vid)

ATHENS - Schools of all levels of education will remain closed throughout Attica on Monday and Tuesday, January 24-25, due to extreme weather conditions.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. abc@xyz.com

You may unsubscribe at any time using the link in our newsletter.