Folli Follie bondholders are demanding the departure of its chief executive officer Tzortzis Koutsolioutsos before they start discussing a possible restructuring of the jewelry company’s borrowing, Kathimerini understands following Wednesday’s meeting of their representatives in London.
People aware of the intentions of the troubled firm’s creditors speak of a demand that is mainly aimed at earning them some time to plan their other moves, as they appear to have a different target: Holders of bonds in both Swiss francs and in euros are now seeking to take control of the company’s share capital.
They believe that if they restructure Folli Follie by installing an independent professional management team and financing it, they will in the medium term be able to sell its holdings and assets and recover a significant portion of their original capital, which they would lose through a haircut on the dues under a Koutsolioutsos administration. Still, they are unable to make those moves as long as Folli Follie remains under the protection of the Greek bankruptcy law.
Meanwhile, the Koutsolioutsos management is showing no intention of leaving, and is proceeding with its plan to find another investor and force its creditors to accept a smaller amount of repayment.