Lazare Kaplan International Inc. notified the Securities and Exchange Commission (SEC) that it would again be filing a quarterly financial report late for the fiscal period that ended on February 28, 2013. Nonetheless, Lazare Kaplan estimated that its revenue for the fiscal third quarter fell 31 percent year on year to $15.3 million, while sales for the first nine months of the fiscal year slipped 38 percent to and $50.2 million. The decrease reflected a drop sales of both polished and rough diamonds, according to the company.
Lazare Kaplan has been unable to file its quarterly and fiscal-year
financial statements since September 2009 due to unresolved material
uncertainties concerning the collectability and recovery of certain
assets and potential obligations under certain lines of credit. The
company stated that uncertain economic conditions continue to impact the
diamond and jewelry industry. In addition, its litigation with Antwerp
Diamond Bank N.V. and KBC Bank N.V., and the inability of the company to
timely resolve these material uncertainties, has adversely impacted its
ability to transact business.
Once Lazare Kaplan has resolved these issues, it intends to file the
current year's first through third quarter financial statements, as
well as full results for each of its fiscal years that ended on May 31,
2009, 2010, 2011 and 2012, according to its statement.
Meanwhile, the company updated the SEC on its ongoing litigation with
KBC Bank and Antwerp Diamond Bank. In April 2012, KBC and Antwerp
Diamond Bank filed motions to dismiss Lazare Kaplan's $500 million
Racketeer Influenced and Corrupt Organizations Act (RICO) complaint
against them, which a U.S. District Court judge granted on September 5,
ruling that the suit must handled in Belgium. Nonetheless, Lazare Kaplan
appealed that judge's decision.
On March 21, Lazare Kaplan filed criminal proceedings against Antwerp
Diamond Bank in Antwerp, alleging fraud, embezzlement and
money-laundering. The Belgian judge ordered Lazare Kaplan and Antwerp
Diamond Bank to brief their positions on the potential need to suspend
the civil proceedings, pending the resolution of criminal allegations.
Proceedings in that criminal case are scheduled to commence on May 3 and
further proceedings in the civil case are currently scheduled for May
Lazare Kaplan believes that the litigation have a significant
detrimental effect on the company's ability to transact business in the