SURAT: In but another surprise to the gemstones and jewellery business, Eurostar Diamond Traders, one of the vital greatest diamond firms in Antwerp has been declared bankrupt through the Antwerp Corporate Court. The manufacturing company, established in 1978 through Kaushik Mehta, mentioned to have money owed attaining as much as part one thousand million bucks.
Industry resources mentioned that with but another diamond company going bankrupt, financial institution finance within the business goes to be harder.
Anirudha Lidbide, diamond business analyst mentioned, “Diamond business has lost its glitter after the series of chapter and frauds dedicated through large diamond company owners. The chapter procedure towards Indian firms in foreign countries will make financial institution financing in diamond firms harder.”
Eurostar Diamond Traders, owned through Jain diamantaire Kaushik Mehta, owes an estimated $500 million (Rs three,500 crore) to the banks and fiscal institutions. Sometime ago, the corporate lost its sightholder standing with De Beers on account of its monetary problems.
Industry resources mentioned that Eurostar company owns an workplace within the Bharat Diamond Bourse (BDB) in Mumbai and is member of the Gems and Jewellery Export Promotion Council (GJEPC). The company has close business members of the family in Surat and Mumbai and that many of the company’s diamond shares was manufactured in Surat.
Last month, the corporate had filed an appeal with the Antwerp court, inquiring for for protection from creditors. The court, however, rejected the request wondering one of the monetary data presented earlier than the court.
Earlier, the corporate had admitted in November 2018 that its diamond shares were most effective price $25 million, despite valuing them at $148 million in September 2018. The company lost the trust of its maximum essential creditors and is indebted to them for enormous sums of cash.
A senior legit of Bharat Diamond Bourse (BDB) looking for anonymity mentioned, “After the banking fraud price Rs 13,000 crore involving Nirav Modi and Mehul Choksi, the chapter continuing towards Indian company in Antwerp will further tighten the financial institution advances within the diamond sector.”
Kirti Shah, diamond exporter mentioned, “Banks have lost confidence in financing the gemstones and jewellery firms. We are facing lot of hardships for obtaining finance from the banks. Nowadays, we need to furnish 100% collaterals towards the financial institution advance.”
Industry resources mentioned that with but another diamond company going bankrupt, financial institution finance within the business goes to be harder.
Anirudha Lidbide, diamond business analyst mentioned, “Diamond business has lost its glitter after the series of chapter and frauds dedicated through large diamond company owners. The chapter procedure towards Indian firms in foreign countries will make financial institution financing in diamond firms harder.”
Eurostar Diamond Traders, owned through Jain diamantaire Kaushik Mehta, owes an estimated $500 million (Rs three,500 crore) to the banks and fiscal institutions. Sometime ago, the corporate lost its sightholder standing with De Beers on account of its monetary problems.
Industry resources mentioned that Eurostar company owns an workplace within the Bharat Diamond Bourse (BDB) in Mumbai and is member of the Gems and Jewellery Export Promotion Council (GJEPC). The company has close business members of the family in Surat and Mumbai and that many of the company’s diamond shares was manufactured in Surat.
Last month, the corporate had filed an appeal with the Antwerp court, inquiring for for protection from creditors. The court, however, rejected the request wondering one of the monetary data presented earlier than the court.
Earlier, the corporate had admitted in November 2018 that its diamond shares were most effective price $25 million, despite valuing them at $148 million in September 2018. The company lost the trust of its maximum essential creditors and is indebted to them for enormous sums of cash.
A senior legit of Bharat Diamond Bourse (BDB) looking for anonymity mentioned, “After the banking fraud price Rs 13,000 crore involving Nirav Modi and Mehul Choksi, the chapter continuing towards Indian company in Antwerp will further tighten the financial institution advances within the diamond sector.”
Kirti Shah, diamond exporter mentioned, “Banks have lost confidence in financing the gemstones and jewellery firms. We are facing lot of hardships for obtaining finance from the banks. Nowadays, we need to furnish 100% collaterals towards the financial institution advance.”
Another diamond firm with Rs 3,000 crore dues declared bankrupt
![Another diamond firm with Rs 3,000 crore dues declared bankrupt]()
Reviewed by Kailash
on
April 17, 2019
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