Bank Seizes Exelco's Assets: Bloomberg

By Rapaport News / July 06, 2017 / / Article Link

RAPAPORT... Belgian bank KBC Group has seized assets of Antwerp diamond firmExelco to recover unpaid loans, according to a report by Bloomberg this week.In an effort to recoup $29 million (EUR 26 million) fromExelco, the lender had bailiffs search the diamond manufacturer's Antwerpoffices, as well as premises belonging to De Beers and ABN Amro, where Exelco mighthave additional assets, Bloomberg cited court documents as saying. KBC carried out the seizure on June 22, the report said.However, according to the documents, the goods were insufficient to cover thedebt, Bloomberg reported. Exelco also has credit lines with Standard Chartered, thethe news service continued, citing anonymous sources. The diamond firm's debts totaled $133.1 million - including nearly $30million owed to banks - in its latest consolidated annual accounts for 2015,filed about a year ago.Exelco declined to comment, "given the nature of thefinancial and legal matters." KBC and Standard Chartered did not immediatelyrespond to requests for comment. Exelco is a De Beers sightholder, according to the Antwerp company's website,buying rough and manufacturing it into polished diamonds. It supplies bothloose stones and jewelry to some of the world's leading jewelers, the site says. However, the company lost its sightholderstatus earlier this year and is now only an accredited buyer, meaning it onlypurchases supply on an ad hoc basis, Bloomberg said. Exelco supplies retailers such as Signet Jewelers with theTolkowsky Ideal Cut diamond - named for Marcel Tolkowsky, who invented the ideal-cutround brilliant diamond in 1919. His great nephew, Jean-Paul Tolkowsky, aseventh-generation diamantaire, co-founded Exelco in 1993 with Leon and LiorKunstler.