RAPAPORT… Eurostar Diamond Traders, one of the biggest names in the
Antwerp industry, has entered bankruptcy following a legal battle with its
banks.
The Antwerp Corporate Court ruled Thursday in favor of that
outcome. Eurostar plans to appeal the decision, according to the company’s
chairman and founder, Kaushik Mehta.
“For Kaushik Mehta and Eurostar, this is a very
disappointing day, which he still is appealing and fighting,” the
diamond-manufacturing firm said in a statement to Rapaport News.
Eurostar blamed its main lenders, ABN Amro and Standard Chartered, for being
too aggressive in demanding repayment of debts. Both banks declined to comment.
The company owes an estimated $500 million, according to
court-appointed administrator Alain Van den Cloot.
Image: A diamond ring under inspection. (Shutterstock)
Antwerp’s Eurostar Enters Bankruptcy
The Bottom Line
- Eurostar Diamond Traders entered bankruptcy following a legal ruling by the Antwerp Corporate Court.
- The company plans to appeal the decision, with chairman Kaushik Mehta expressing disappointment.
- Eurostar owes approximately $500 million and blames its main lenders, ABN Amro and Standard Chartered, for aggressive debt demands.
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