Greek jeweller Folli unveils restructuring plan, CEO steps down (updated)

Folli Follie SA

18/12/2018 21:04

(Adds restructuring plan)
    By Angeliki Koutantou
    ATHENS, Dec 18 (Reuters) - Greek jewellery maker Folli
Follie will seek creditor approval for a planned overhaul of the
business, it said on Tuesday after announcing the resignation of
the troubled company's CEO.
    The restructuring plan and resignation of George
Koutsolioutsos comes after a hedge fund report in May sent
Folli's shares into a tailspin, prompted a legal investigation,
a fine from the Greek securities watchdog and the resignation of
the company's founders. urn:newsml:reuters.com:*:nL8N1YC5ME
    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.
    On Tuesday Folli announced details of its restructuring
after lengthy discussions with advisers for 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.
    Folli said that it will be split in two, transferring 
specific assets and liabilities to one of the entities to assure
investors that the "legacy accounting and control issues" will
be ringfenced.
    The group also delivered a new business plan it said would
restore profit growth in the next three years.
    Folli said it aims to raise between 25 million euros and 45
million euros from new investors in the first quarter of next
year, adding that this and selected assets sales will cover its
financing needs of up to 80 million euros next year.
    Court approval of the restructuring plan depends on the
company obtaining agreement from 60 percent of its creditors,
which Folli said it is seeking by the end of the month. 
    In a separate statement, Folli said that its board accepted
the resignation of CEO Koutsolioutsos and asked him to remain a
non-executive board member to help the new management.
    Follie will announce a successor in due course, it said. 

 (Reporting by Lefteris Papadimas and Angeliki Koutantou
Editing by David Goodman)
 ((lefteris.papadimas@thomsonreuters.com; +30 210 3376477;
Reuters Messaging: lefteris.papadimas.reuters.com@reuters.net))