Greek jeweller Folli board approves revised restructuring plan

Greek jewellery maker Folli Follie’s board has approved a revised restructuring plan proposed by a group of bondholders in a bid to save it from collapse.

The restructuring plan comes after a hedge fund report in May last year 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.

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 an overhaul.

A Folli source told Reuters the board of directors approved the plan on Wednesday following fresh talks with some of the bondholders in Athens.

“The board of directors of the company approved the execution of an updated term sheet with a group of bondholders regarding the proposed financial restructuring of its group,” Folli said in a bourse filing.

It said that the company would send “a consent invitation to all bondholders, with the purpose of achieving an agreement by the required by law percentage of its creditors”.

Folli announced details of its restructuring in December after talks with advisers for a group of unsecured creditors who represent about 27 percent of almost 250 million euros of bonds due this year, as well as holders of 51 million euros of bonds governed by German law and due in 2021.

Bondholders are not expected to vote on the plan within a month, the source said, adding that at least two thirds of them needed to approve it in order for it to go ahead.