RAPAPORT… The sale of A. Jaffe’s assets to Parag Diamonds is off for
the time being.
The “sale motion” — a proposal to auction off A. Jaffe — has been withdrawn, according to a court notice the company’s lawyers filed last week. Parag, also known as Paramount Gems, won the bid to acquire the assets earlier this month for $8 million.
A New York bankruptcy judge put the sale on hold because he needed more information about how much A. Jaffe was worth, as well as its connections to Indian fugitive Nirav Modi, according to a report by legal news service Law360. The decision was “without prejudice,” meaning the court could reconsider the sale plan in future.
A. Jaffe and its affiliates, Firestar Diamond and Fantasy, which form part of Nirav Modi’s
global business empire, filed for Chapter 11 in February after the jewelry
tycoon became the subject of an investigation into alleged bank fraud. That
probe damaged the firms’ supply chains and back-office support, making it
almost impossible to continue as businesses, Mihir Bhansali, the president of
the three companies, said in a court declaration at the time.
US Court Stalls $8M Sale of A. Jaffe
The Bottom Line
- The proposed $8 million sale of A. Jaffe's assets to Parag Diamonds has been withdrawn following a court order.
- A New York bankruptcy judge delayed the sale to gather more information on A. Jaffe's valuation and its links to fugitive Nirav Modi.
- A. Jaffe and its affiliates filed for Chapter 11 bankruptcy in February due to disruptions from the investigation into alleged bank fraud involving Modi.
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