Diamond Firm with $500M in Debt Enters Bankruptcy

Eurostar Diamond Traders, an Antwerp-based raw-diamond polishing company, has entered bankruptcy, Rapaport News reports.

The proceeding is the result of a decision by Antwerp Corporate Court. 

The firm had requested protection from its creditors at the end of February, but the Antwerp Court of Appeal rejected the request.

The company said in a statement: “For [CEO] Kaushik Mehta and Eurostar, this is a very disappointing day, which he still is appealing and fighting.”

The firm owes about $500 million and has lost its De Beers sight, according to De Tijd, a Belgian newspaper.

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Major creditors include ABN Amro, Bank of India, KBC Bank and Standard Chartered Bank, the Brussels Times reports.

The Court of Appeal wrote that Eurostar “doesn’t have a single marketable diamond” and “can no longer function normally.”

Read more at Rapaport News