An Athens court has revoked an injunction protecting the assets of jewelry maker Folli Follie from creditors, essentially leaving the troubled company’s fate in the hands of Greek banks, it emerged on Monday.
The company had appealed for protection under Article 106 of Greece’s bankruptcy code in the summer, and the discussion of its appeal had been scheduled for the send half of November. However it appears that the company will be unable to avoid going into receivership.
With Folli Follie bondholders trying to take control of the company’s share capital, it appears that Greek banks will stand to benefit from the lifting of an injunction protecting the jewelry maker from its creditors.
Greek banks, whose exposure to Folli Follie is estimated at 46 million euros, have been seeking the liquidation of their collateral, particularly Folli Follie’s 36.5 percent percent share in Attica Department Stores.
According to sources, they have already found buyers for their share.
If the banks move quickly to secure this sale, this would facilitate the efforts of bondholders.