Folli Follie

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.

The Greek securities regulator said on Tuesday it had filed a lawsuit against the management of luxury jewelry maker Folli Follie.

The Capital Market Commission said it had sued the board members and financial directors of the Folli Follie group and its Asian business, without giving details of the allegations.

The creditors of the troubled Folli Follie Group - banks and bondholders - are examining all possible options for the listed company's future as there is a growing feeling that it will not emerge unscathed from its crisis regardless of the correctness of its financial reports.

The suspension of Folli Follie's stock on Friday changed the mood from positive to negative at Athinon Avenue, turning mild gains into significant losses for the majority of listed companies, with the decline accelerating during the closing auctions.

The trading week in Athens ended with a volatile session that saw the benchmark drop for a fifth time in as many days. The majority of stocks ended up with gains, albeit small in most cases. Despite the prospect of a swift staff-level agreement with the creditors and the May triple-witching, the market remained subdued for most of the day.

China's Fosun International Ltd is seeking explanations from Folli Follie, where it is the second biggest stakeholder, about its actual financial state.

Representatives of the Folli Follie Group and Ernst & Young will meet again on Friday with the Capital Market Commission to hear the confirmation of the stock market watchdog's demand for an independent probe by E&Y into the blue chip company. The meeting will determine the range and timetable of the inspection.