Folli Follie, a renowned Greek jewellery maker, has been navigating a tumultuous period as it seeks to avoid collapse following a disruptive hedge fund report last year. In a bid to chart a path forward, the company’s board has recently endorsed a revised restructuring plan proposed by a consortium of bondholders.
The decision to pursue a restructuring plan comes in the aftermath of a series of setbacks that rattled the company, including a sharp decline in its stock value, regulatory investigations, penalties imposed by the Greek securities authority, and the departure of the firm’s original founders. In response to an initial audit that unearthed substantial discrepancies in its financial records for 2017, Folli Follie has prioritized implementing sweeping changes, such as installing new board members and engaging in dialogue with creditors to explore potential restructuring options.
Folli Follie’s board of directors granted approval to the proposed restructuring plan following productive negotiations with bondholders in Athens. The company is now poised to dispatch a consent invitation to all bondholders in a concerted effort to secure the requisite percentage of creditor support mandated by law.
In a disclosure made last December, Folli Follie divulged the specifics of its restructuring strategy after productive deliberations with advisors representing unsecured creditors who hold approximately 27% of the nearly 250 million euros in bonds maturing this year. Additionally, the company is dealing with bondholders possessing 51 million euros in bonds subject to German law that are set to mature in 2021. The proposed plan will be subject to a vote by bondholders after a minimum lapse of one month, with a stipulation requiring the approval of at least two-thirds of bondholders for the restructuring scheme to advance.
This recent development within Folli Follie marks a pivotal juncture in the company’s efforts to stabilize its operations and surmount its fiscal hurdles, signaling a determined endeavor to reclaim its standing within the jewellery sector.
For more information on Folli Follie’s restructuring efforts, visit their official website here. Additionally, for insights into the global jewellery industry landscape, refer to this informative resource here.
