Justice… has spoken. A number of years in jail for the initiators of the “large fraud” within the case of Folli Follie. Sentences of 10 to 17 years have been determined by the Three-member Court docket of First Occasion of Crimes for the three members of the Koutsolioutsou household, key shareholders of the gold “empire extra fake than its … trinkets.
Nonetheless, the one one from the household who will go to jail for 11 years is Tzortzis Koutsolioutsos. Because it was judged that if he’s launched there’s a threat that he’ll commit related acts. The son who knew nothing of what his father did within the firm. Who was keen to compensate the shareholders of Folli Follie together with his pledged property.
The Koutsoliutsos will serve their sentence with a “bracelet”.
Dimitris and Kaiti Koutsoliutsou
Quite the opposite, his mother and father and founders of the corporate, Dimitris and Kaiti Koutsoliutsou they are going to serve their sentences, 17 and 10 years respectively… at dwelling. The court docket accepted the request of their lawyer, for his or her sentence to be served at dwelling with a bracelet attributable to their superior age.
On the similar time, the court docket ordered the return of the corporate’s frozen funds on to the injured small shareholders, who have been harmed by the inventory market fraud. A choice that was enthusiastically obtained by the Greek Buyers Affiliation.
The “bomb” with the seized property
However, at Folli Follie’s headquarters in Agios Stefanos and on the new administration of the corporate that took over to finish its consolidation, the choice exploded like a… “bomb”. Actually.
Disappointment was rife as everybody eagerly awaited their launch and return to the corporate with a view to full the rescue plan being applied in settlement with its bond collectors.
The discharge of those property, estimated to be value round €31 million (€28 million in actual property and €3 million in money) was a significant ingredient in transferring ahead with the rescue plan agreed round 4 years in the past.
The chance of default by the bondholders
The state of affairs is now dangerously difficult, with the corporate’s future hanging within the stability. The trouble being made to proceed its operation is in peril of being shaken within the air, as circles near the administration of Folli Follie report back to OT.
All of it is determined by the bondholders and whether or not they determine to again out of the deal after a key element of it’s damaged.
The precise property, primarily actual property, could be transferred to a brand new physique established on the premise of the settlement and would result in – a minimum of partial – compensation of the defrauded bondholders (in addition to the opposite shareholders).
The administration’s solely hope within the occasion of bondholders backing out could be the arrival of a brand new strategic investor, who would contribute the required capital to restart the corporate. Which is extraordinarily troublesome given the state of affairs the corporate has discovered itself in.
No financial institution credit score for nearly 6 years!
Folli Follie has been working for the final 6 years and not using a mortgage, prepaying its merchandise purchases in money and repeatedly paying its workers salaries.
The managing director of Folli Follie, George Samios (s.s. was appointed by a court docket order in 2020 on the request of the Capital Market Fee), talking to journalists the earlier time, he had confided that the corporate can’t proceed “not even six months” with out the discharge of the property.
And this, as he famous, is as a result of the bondholders could withdraw from the consolidation settlement that has been accomplished, placing its survival in addition to roughly 600 jobs at quick threat.
Nike and what’s left of the… empire
Tzortzis Koutsolioutsos
On the time of writing, Folli Follie’s bondholders had not contacted administration to announce a choice.
Quite the opposite, the administration after receiving full data of the court docket’s choice will meet with its authorized division with a view to decide its response and whether or not to file an attraction.
Follie Follie at the moment has round 70 shops in Greece, Cyprus, Bulgaria and Romania whereas on the similar time coming into into new partnerships, after the lack of 42 manufacturers it represented, primarily Nike, till the scandal broke.
On December 29 of final 12 months, the buying and selling of its shares on the board of the Athens Inventory Trade was additionally stopped, since buying and selling was suspended for a very long time and there was no prospect of renegotiating its values.
Supply: ot.gr
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