Creating IMAP folders/subfolders with Thunderbird

Hi,

I have dovecot-2.2.15 on fedora21 with Thunderbird and having some difficulty creating subfolders and deleting folders.

Creating subfolders results in a folder at the root with a caret instead of a slash called folder^subfolder with an entry in .subscriptions with that name, instead of a new folder under the directory.

I'm also unable to delete any folders. The command from within Thunderbird is just completely ignored.

Any idea what's happening here?

Thanks, Alex