BUSINESS

Folli Follie has its properties frozen

ILIAS BELLOS

TAGS: Business

Greece’s anti-money-laundering authority has confiscated Folli Follie’s property assets, according to sources, in a move that torpedoes the streamlining plan being debated with the troubled jewelry maker’s creditors.

The consent and funding of creditors was necessary for the submission of the company’s streamlining plan in court in two months’ time (on January 22, 2019), but that provides for the deal being secured by the company’s properties, as the law dictates.

Now that justice has frozen the company’s property assets, as Kathimerini understands, all sides are seeking alternatives, but this will no no easy task. “It would take a huge leap of confidence for creditors to sign that plan, let alone provide money; based on the past and the precedent of Folli Follie behavior, this is impossible,” commented an individual involved in conference calls discussing the plan.

Meanwhile the Capital Market Commission is said to have completed its examination of Folli Follie’s 2016 financial report and is expected to impose fresh fines soon. They are expected to be of the same level as those imposed over the 2017 report, amounting to 4 million euros – and the findings will be sent to the prosecutor.
 

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