Greek banks are about to auction off Folli Follie’s 35.7 percent stake in Attica Department Stores to recoup funds they loaned to the troubled jewelry group.
The holding was used as collateral for the loan issued to Folli Follie last May, when the group started feeling repercussions after the revelation of discrepancies in its financial reports.
The auction process is expected to begin early next week with the relevant documents being sent to the company. From that point until the actual tender there will be a two-week period during which the parties involved will be allowed to halt the procedure.
Folli Follie and a number of its creditors have expressed objections to this move by the banks and an effort may be made to freeze the process, even though the company is no longer protected from its creditors after the rejection of its application last Monday.
Offers by investors interested in the stake are expected in the week beginning on December 10, with valuations putting the entire share capital of Attica Department Stores at about 140 million euros. Given that the stake on offer does not have a say in the management, a discount is expected on the price.