Creditors seek to end Folli asset protection to recoup loans

Folli Follie SA

10/09/2018 13:48

ATHENS, Sept 10 (Reuters) - A group of Folli Follie's
 HDFr.AT  creditors are calling for an injunction protecting the
Greek jewellery maker's assets to be lifted, saying they are due
44.5 million euros ($51.5 million).
    Greek authorities opened an investigation into Folli earlier
this year after equity fund Quintessential Capital Management
(QCM) alleged the company had overstated the number of retail
outlets it operates worldwide, raising concerns over its
reported finances.
    Folli's shares plunged in May after the QCM report,
prompting the Greek securities regulator to suspend trading on
the shares on May 25 after the firm failed to provide requested
financial data. 
    Folli, which employs about 5,000 people, has obtained a
temporary court injunction to protect its assets.  urn:newsml:reuters.com:*:nL5N1UJ2ZP
    But ahead of a court hearing set for Sept. 12, Alpha Bank,
National Bank, Eurobank and Piraeus declared loans totalling
about 44.5 million euros to Folli "immediately due and payable,"
Folli said in a bourse filing on Monday.
    The banks have asked the court to dismiss the company's
pending asset protection application and reject extending the
temporary court injunction, it said.
    Folli said it would immediately start discussions with its
creditors to find "arrangements" so the banks could support it
at the court hearing later this week.
    Last week Folli pushed back its annual shareholders meeting,
due on Oct 10, saying it expected the conclusion of a financial
audit by then.
    ($1 = 0.8643 euros)

 (Reporting by Angeliki Koutantou; Editing by Mark Potter)
 ((angeliki.koutantou@thomsonreuters.com; +30 210 3376436;
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))