Iwould run a simulation with a new scene and drop the cloth onto a small sphere, use self-collision and collide with sph3ere ande ground.  start the cloth at an angle to the ground to promote some extra folding.

 

Export the cloth at a suitable frame , then import it to your scene. The bit draped over the sphere is to fit into the hand , set to grasp the cloth.  It will be a static prop but you wont hve any collision problems.