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Folli seeks creditors' approval on a revised restructuring plan

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By Reuters
Folli seeks creditors' approval on a revised restructuring plan
FILE PHOTO: A woman walks past a Folli Follie store in central Athens, Greece, October 10 2018. REUTERS/Costas Baltas   -   Copyright  COSTAS BALTAS(Reuters)
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ATHENS (Reuters) – Jewellery maker Folli Follie <HDFr.AT> has launched a revised proposal to secure consent from its creditors on its restructuring and secure its viability, the troubled Greek company said on Tuesday.

The step is key for the firm, which has debt of about 430 million euros due this year and in 2021, to avoid collapse.

Along with its luxury jewellery trademark, Folli distributes international apparel brands in Greece, including Nike and Calvin Klein. It employs 5,000 people in its home market and abroad, including in China and Japan.

A hedge fund report last year suggesting the company misrepresented sales sent Folli’s shares into a tailspin, prompted a legal investigation, fines from the Greek securities watchdog and the resignation of the company’s founders.

Folli has been in lengthy talks with its creditors to restructure its debt and operations.

It said on Tuesday that a previous agreement with a group of unsecured creditors in February has failed and that the company has worked on an alternative restructuring proposal with its advisers.

Folli needs the approval of the majority of its creditors before applying to a Greek court to start its rehabilitation plan, it said.

Court ratification of the plan is expected by June 2020, it added.

(Reporting by Angeliki Koutantou; Editing by Muralikumar Anantharaman)