Folli Follie: Requests asset release

The company points out in its announcement the very serious side effects that the delay in completing the trial has on the consolidation of Folli Follie, which is the main mission of the Board of Directors.

It is noted that the Board of Directors was informed of the decision of the 5th Three-Member Court of Criminal Appeal to postpone the trial against former company executives and other persons to June 19, 2023, which implies the further delay of the completion of the trial (in the first instance) by at least 1.5 years.

“The consolidation of the company, as has been decided by the competent Courts, is in the interest of the national economy, since it disconnects the company from the accused shareholders and allows its survival, contributing to the country’s production process, providing jobs, offering taxes and contributions to the State and thus contributing to the Greek economy. After all, this is also the function of the institution of consolidation” is noted in the same announcement.

Indicatively, it is reported that an ancillary part of the said trial – but essential for the consolidation – concerns the company’s request for the release of immovable property (valued at approximately 28 million euros) and bank accounts (amounting at approximately 3 million euros) that had been frozen during the criminal preliminary proceedings based on Law 4557/2018 (on combating money laundering from criminal activities). It is noted that the actions attributed to the defendants that led to the seizure of these assets primarily harmed the company itself and its creditors, whose damage the reorganization seeks to – at least partially – remedy.

According to the approved reorganization agreement of the company, the assets in question will be transferred to the new companies, which will continue the business activity on a sound basis and will be controlled by the contracted creditors, who have reportedly waived all their claims for the amount more than about 430 million euros. The assets in question are absolutely necessary for the continuation of the business and the successful substantive completion of the resolution.

Without the immediate release of the assets in question, the consolidation, which has been sought by the Capital Market Commission and the other competent bodies through the appointment of the present Board of Directors, is hindered, according to the same announcement. “At the same time, the image of the country in the international investment community is affected. Taking into account the above, the company will exhaust its only means of reaction, once again requesting the release of the assets in question through the competent Athens Appeals Council, in the hope that this time the urgent need for the immediate unhooking of the restructuring will be heard from the criminal procedure and for its completion, for the benefit of the creditors, the State, but also the 1,000 employees and their families” it is pointed out.

RES-EMP

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