Court extends asset protection for Folli Follie

A Greek court on Wednesday extended an injunction protecting jewelry maker Folli Follie’s assets from creditors by two months, a judicial source said.

Folli, which employs about 5,000 people worldwide, had obtained a temporary court injunction to protect its assets.

A group of creditors sought the lifting of the injunction to recoup loans.

Folli was not immediately available to comment on the ruling. It had applied for an extension of the temporary injunction, seeking to reach an arrangement with its creditors and prepare a restructuring plan after the conclusion of a financial audit.

Greek authorities opened an investigation into Folli Follie 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 2017 reported finances.

Folli Follie’s shares plunged in May after the QCM report, prompting the Greek securities regulator to suspend trading of the shares on May 25 after the firm failed to provide requested financial data.

The company last week pushed back its annual shareholder meeting due on October 10, saying it expected the conclusion of a financial audit by then. [Reuters]