Banks reject Folli Follie protection


Three out of five banks that have issued loans to Folli Follie disagreed that the troubled jewelry company should be granted an injunction to protect it from its lenders when an Athens court examined its second application late on Thursday.

The decision of the court on the provision of protection will be made on Monday. However, given the attitude of the banks, which argued that by law such protection can only be provided once, the chances of the application being accepted or rejected are equal, legal sources told Kathimerini.

The position of the banks was more or less anticipated. National, Piraeus and Eurobank were against the provision of protection, while Alpha and Attica Bank were not present during the process.

The first protection application – whose application has expired – had been submitted by FF Group Finance Luxembourg II SA, a Folli Follie Group subsidiary that had issued its bonds. The new application was tabled by some 500 employees and parent company Folli Follie AEBTE. However, both applications concern the same corporate entity.

Market sources say that if the bid for protection is rejected on Monday the company will try to prevent the sale of its stake in Attica Department Stores by the banks.