Agios Stefanos, Thursday 15 November 2018
The company under the trade name “FOLLI-FOLLIE COMMERCIAL MANUFACTURING AND TECHNICAL SOCIETE ANONYME”, under the distinctive title “FF GROUP” (hereinafter the “Company”), provides the following update to the market.
Yesterday, November 14th, 2018, an application for the granting of protective measures under Article 106a of Law 3588/2007 was filed with the Athens Single Member Court of First Instance by approx. 400 employees jointly with the Company. A provisional order hearing regarding said application was held today, Thursday, November 15th, 2018. The application for the granting of protective measures was submitted in order to secure the timeframe needed to finalize the terms of the Company’s restructuring plan, aiming to ensure its long-term sustainability in all business sectors. With the primary aim to ensure that the requested protective measures are granted, the Company received and submitted before the Court written support of over 50% of its unsecured creditors, including the Swiss Bondholder Trustee, the Schuldschein Holders and the Ad Hoc Committee of the Exchangeable Euronotes Holders.
The Company will provide an update to the investors regarding the Court's ruling in due course.
In addition, the Company announces that its management is in the process of producing a revised business plan with the assistance of Deloitte, for the total restructuring of its operations, as well as for the protection of its shareholders, investors, creditors, as well as employees and partners.
Any new investment will need to be made in terms which are acceptable to the requisite majorities of the Company’s stakeholders. Thus, the Company is seeking to expedite negotiations with its creditors and potential investors on the terms of its restructuring plan, so that such plan gains sufficient support from its stakeholders in order to be eligible for judicial ratification under the provisions relating to rehabilitation.
Significant progress has recently been made in this respect, following also the aforementioned support from over 50% of the Company’s unsecured creditors. At the same time, the Company continues to cooperate with the Hellenic Capital Markets Commission in relation to the re-establishment of audited accounts for the Company and Group, on which a further update will be made as appropriate.
Furthermore, and as previously announced by the Company on 30/10/2018, the Company has already taken a number of steps to strengthen the procedures and the implementation framework of corporate governance rules and the future stability of the business.
These steps include:
Additionally, the Company’s Board of Directors has authorised and established a Steering Committee to oversee the progress of the Company’s rehabilitation plan.
The Company’s Board of Directors expects that, with the establishment of the Steering Committee and delegation of new authorities, the Board will be able to interact more effectively with its creditors in order to achieve an early filing of the aforementioned rehabilitation agreement for ratification by the Court. The Company’s Board of Directors will also invite proposals from other interested parties with the intention of maximising value for all stakeholders.
The Company is advised by Deloitte, Norton Rose Fulbright, iDeaLaw, Serafim Sotiriades & Associates Law Firm and Michail Poulitsas Law Office.
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