Folli Follie creditors see protection as invalid
Folli Follie creditors – banks and bondholders – are expected to determine their stance this week toward the listed company’s recourse to protection from bankruptcy.
The luxury jewelry firm’s inclusion in the pre-bankruptcy procedure last week was meant to prevent the seizing of its assets and other measures that would have forced it to halt operations.
However, it has emerged that the protection was achieved thanks to the consent of the group’s subsidiary in Luxembourg, FF Group Finance Luxembourg SA, which has issued two bonds for Folli Follie – of 50.4 million euros and 102.4 million euros – accounting for 28.69 percent of the company’s total obligations.
The view of the banks and the creditors who have actually bought the Folli Follie bonds is that the protection the company has achieved may be invalid, as the Luxembourg-based firm is a subsidiary of Folli Follie and it is likely that the real creditors were not consulted with regards to the initiative.
