ECONOMY

Folli Follie to seek nod for restructuring plan

folli-follie-to-seek-nod-for-restructuring-plan

Greek jewelry maker Folli Follie will seek creditor approval for a planned overhaul of the business, it said on Tuesday, after announcing details of its restructuring following lengthy discussions with advisers.

This concerned a group of unsecured creditors who represent about 27 percent of almost 250 million euros of bonds due next year, as well as holders of 51 million euros of bonds governed by German law and due in 2021.

The restructuring plan – as well as the resignation of chief executive Tzortzis Koutsolioutsos – comes after a hedge fund report in May sent Folli Follie’s shares into a tailspin, prompted a legal investigation, a fine from the Greek securities watchdog and the resignation of the company’s founders.

Folli has admitted big discrepancies in its 2017 financial statements after an initial audit, has appointed new board members and started talks with creditors on how it will be restructured to avoid a collapse.

[Reuters]