Greek court rejects Folli's injunction for creditor protection - document

Folli Follie SA

22/10/2018 12:31

ATHENS, Oct 22 (Reuters) - A Greek court has rejected an
injunction filed by jewellery maker Folli Follie  HDFr.AT  for
temporary protection of its assets from creditors, according to
a court document seen by Reuters.
    Folli, a luxury Greek brand with a distinct peach curvy
logo, has been in the spotlight after a hedge fund raised
concerns over its financial statements for last year.
    The hedge fund, Quintessential Capital Management, said in a
report last May that the company overstated the number of its
outlets. It also questioned its accounting practices in Asia
where the company had expanded rapidly.  urn:newsml:reuters.com:*:nL8N1TS151
 urn:newsml:reuters.com:*:nL5N1UJ2ZP
    The report sent Folli's shares down sharply, led to a fine
from the Greek securities commission and an investigation and
the resignation of its founders last month.  urn:newsml:reuters.com:*:nL8N1WP28W
 urn:newsml:reuters.com:*:nL8N1WG0EZ  urn:newsml:reuters.com:*:nL8N1WC4LZ
    Folli, which employs about 5,000 people worldwide, had
obtained a temporary court injunction to protect its assets to
allow the company to concentrate on a restructuring plan.
    A group of creditors sought the lifting of the injunction to
recoup loans. The temporary injunction expired on Oct.
19. urn:newsml:reuters.com:*:nL5N1VW32F
    The court has now ruled that there were no "legal grounds"
to approve Folli's injunction, according to the court document
seen by Reuters. 
    The document also said the number of creditors participating
in the negotiations for Folli's restructuring plan did not meet
the required threshold under Greek law.
    Folli was not immediately available for comment on Monday.
    The latest court decision is another legal step under Greek
law before the main case for the asset protection is heard next
month.

 (Reporting by Constantinos Georgizas and Angeliki Koutantou.
Editing by Jane Merriman)
 ((angeliki.koutantou@thomsonreuters.com; +30 210 3376436;
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))