Fosun International To Restructure Its Debt To Avoid Bankruptcy Of Folli Follie

On the Western Valentine's day, Greek jewelry and accessories retailers

It announced the approval of a revised scheme of bondholders to avoid bankruptcy.

According to the world clothing shoes and hats net, 2018, Greece

Operators Folli Follie Commercial Manufacturing and Technical SA (FFGRP.AT) Fu Liv (FF Group) encountered short selling agencies questioned financial fraud, and then the company's share price was down, the suspension of the investigation, the final audit institutions sit on its false behavior, the founder of the company was also forced to leave the company's management.

The US hedge fund Quintessential Capital Management LLC (QCM) published a report in May last year, questioning the financial data of Folli Follie. It also called the group exaggerating the scale of its retail network, especially in Asia, especially in China.

FF Group Hellenic and group management immediately strongly denied that it was still difficult to stop the investigation of Hellenic Capital Market Commission (Greek capital market committee) and procuratorial organs.

FF Group co-founder Dimitris Koutsolioutsos and Ekaterini Koutsolioutsos, and their son George Koutsolioutsos have resigned from the board as vice chairmen and chief executives.

Meanwhile, three of them and seven others, including chief financial officer, accounting controller, Asian president and director, were formally charged with fraud and money laundering by Greek financial prosecutors at the end of last year. Assets were also frozen.

The initial audit required by the Greek judiciary authorities showed that at the end of fiscal year 2017, the cash balance of Asian businesses in FF Group was only $6 million 400 thousand, and recorded a loss of $44 million 700 thousand, while the original earnings claim that the cash balance and profits reached $296 million 700 thousand and $316 million 400 thousand respectively, and the annual income of Asia was only 10%, or 116 million 800 thousand dollars, of the 1 billion 112 million 300 thousand dollar reported earnings, roughly in line with QCM's estimate.

The final report of the Greek accounting and auditing standards Regulatory Committee was even more pronounced. FF Group, one of its Asian subsidiaries, Folli Follie Group Sourcing Ltd., had offered $122 million interest free loans to Landocean Industrial Ltd., which had no commercial affiliate in 2016, and sold 862 million 500 thousand and 995 million 100 thousand US dollars in 2016 and 17 years with a company named NG Ltd..

But Landocean Industrial Ltd. and NG Boon Soon are probably just shell companies.

Greek capital is reported.

The Commission has also completed an investigation of FF Group 2016 fiscal year. It is expected to be fined again, and the fine will be equal to 4 million euros in the 2017 financial year financial penalty. The findings will also be pferred to the prosecutor.

In July, FF Group was first granted a temporary injunction against creditors in accordance with the 106th bankruptcy law of Greece. In September, the prohibition order was successfully postponed for two months, when the market had seriously questioned whether the group could take up the reorganization plan and the new investors to face the challenge of creditors after the prohibition order expired in November 12th.

In November, FF Group applied again to the injunction. At that time, the management said that only temporary protection measures could ensure that the group had a stable platform and sufficient time to complete the reorganization plan, and also helped to alleviate the risk of large-scale layoffs at home and abroad, but the Greek court rejected the application.

Greek local media quoted sources as saying that the local anti money laundering institutions had seized property assets of FF Group, and this would seriously damage the restructuring plan that the group needed to submit to the court on 22 January 2019, making it more difficult for creditors to get support and funding from creditors.

It is reported that the second largest shareholder, 0656.HK, has rejected FF Group's request for Euro 20 million financing.

After the short report in May, FF Group mortgaged the Attica Department Stores SA 37.5% share held by the Greek department store to the bank emergency loan, and the related banks began to auction the stake in November.

At present, Dimitris Koutsolioutsos, which holds 35% of the group's shares, is still the largest shareholder. In 2011, it became the second largest shareholder in the 15% Group of FF Group.

Fosun International's annual report at the end of August showed that investment in Greek companies turned from a 62 million euro yield to a loss due to a false accounting scandal.

In the paction of FF Group, Fosun International's total investment was 86 million euros, during which it received a total dividend of 7 million euros, while the collapse of FF Group's share price plummeted the fair value of the investment by 101 million euros.

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