Monday, October 7, 2013

Antwerp Diamond Firm Bankrupt With Debts of $26M

An Antwerp diamond firm has gone bankrupt owing payments to banks and other creditors of $26 million marking the largest single default in the year. The firm's owner reportedly disappeared last week, citing losses.

The case follows one last month when a trader from Surat defaulted on rough diamond payments to at least six Indian traders in Antwerp. He had purchased rough diamonds on 120-day credit terms and was unable to make the payment due to the declining rupee, a leading paper reported. Industry sources claim that the diamond firm trades rough and polished diamonds on Hoveniersstraat in Antwerp. The Indian traders are taking a hit since they are having to find extra rupees to make up for its fall against the dollar. On the other hand, they are having to buy rough at high prices and finding that polished prices are either static or declining.

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