Folli Follie

A Greek court on Wednesday extended an injunction protecting jewelry maker Folli Follie's assets from creditors by two months, a judicial source said.

Folli, which employs about 5,000 people worldwide, had obtained a temporary court injunction to protect its assets.

A group of creditors sought the lifting of the injunction to recoup loans.

A group of Folli Follie's creditors are calling for an injunction protecting the Greek jewelry maker's assets to be lifted, saying they are due 44.5 million euros.

Troubled luxury jewelry firm Folli Follie Group (FFG) is reportedly seeking judicial protection from its creditors abroad in order to manage the restructuring of loans that have been issued outside of Greece.

News that a creditor of luxury jewelry maker Folli Follie Group has terminated its loan agreement with the company could be the beginning of the end for the troubled firm, Gabriel Grego, the head of equity fund Quintessential Capital Management (QCM), told Kathimerini on Thursday.

"The case of Folli Follie has just started, and the truly important developments are yet to come," the head of the QCM fund, Gabriel Grego, has told Kathimerini.

The Capital Market Commission has slapped Athens-listed Folli Follie Group and nine board members or officials with a fine of 4.02 million euros for market manipulation and violation of rules regarding data submission.

Folli Follie creditors - banks and bondholders - are expected to determine their stance this week toward the listed company's recourse to protection from bankruptcy.

The luxury jewelry firm's inclusion in the pre-bankruptcy procedure last week was meant to prevent the seizing of its assets and other measures that would have forced it to halt operations.

The Capital Market Commission is toughening up its attitude toward the listed Folli Follie group, with sources at the stock market watchdog saying that a decision has already been reached to take its board members to court on charges of manipulating the market.

Luxury jewelry maker Folli Follie, whose finances are being investigated by Greek authorities while its shares have been suspended from trading, said late on Monday that a financial audit would be concluded in August.

Ernst & Young expects its inspection into the finances of troubled jewelry group Folli Follie to be completed by August 10, according to EY Greece Chief Executive Panagiotis Papazoglou.