Folli Follie expects rescue talks to bear fruit soon

Talks between Greek jeweler Folli Follie and creditors over a rescue plan are at a “critical” stage and are expected to conclude in the coming weeks, its chairman said on Tuesday.

Folli Follie has been in turmoil since a hedge fund report in May last year questioned its accounting. It published its delayed audited 2017 statements in July, showing it overstated annual revenue by more than 1 billion euros, and presented an alternative overhaul scheme to bondholders after a previous proposal collapsed.

Talks with the bondholders have been ongoing for months.

“Negotiations with the bondholders are at a critical juncture,” Folli Follie’s Chairman Avraam Gounaris told shareholders who met to approve the company’s 2017 statements.

“We estimate that these negotiations will produce a result in the forthcoming weeks,” he said, adding, “There are grounds for our optimism, even if it is contained.”

[Reuters]