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If you wish to be added to any of our other lists, remove your self from this list, or simply stay in contact for any professional announcements or our holiday card, please use this link:
Update Profile/Email Address and choose the appropriate list.
As the e-mail indicates above, you are getting this e-mail because we may have recently met each other (either myself or someone else in our bankruptcy practice).
You can also follow this list on Twitter - @DELAWARECH11 and @ElliottAttys.
Please use the update links on this e-mail and you are welcome to forward the e-mails, just let me know to whom you are sending the update.
I have also provided a link to the petition and other documents in the column to the right. Please contact Michele Flynn at
maf@elliottgreenleaf.com if you have any trouble with the link and would like to receive them.
Sincerely,
Rafael Zahralddin
ELLIOTT GREENLEAF
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Delaware Chapter 11: Exelco North America, Inc.
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Rafael Zahralddin
Commercial Bankruptcy and Restructuring Practice Chair
Elliott Greenleaf
The I.M. Pei Building
1105 North Market Street
17th Floor
Wilmington, Delaware 19801
Direct: 302.384.9401
Cell: 302.545.2888
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Introduction
On September 26, 2017, (the "Petition Date"), Exelco North America, Inc., Exelco NV, FTK Worldwide Manufacturing BVBA, and Ideal Diamond Trading USA Inc., (collectively, the "Debtors") each filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.
The Debtors are represented by Hughes Hubbard & Reed LLP, as lead counsel, and Young, Conaway, Stargatt & Taylor, LLP, as Delaware counsel. The case has been assigned to Bankruptcy Judge Kevin Gross. A hearing on the Debtors' first day motions has not been scheduled since the first day motions have not yet been filed. A meeting to form the Official Committee of Unsecured Creditors has not been scheduled.
Background
The Debtors are a wholesaler and polished manufacturer of diamonds that offer rough diamonds, core polished diamonds, branded diamond jewelry, and signature cut diamonds for leading diamond retailers internationally. The Debtors' rough diamonds are ethically sourced from areas that are free of conflict and abuses of human rights. All stones for their manufacturing needs are received directly from the De Beers affiliate DTC and other BPP-compliant companies. From the time the rough stones leave their global DTC sights each diamond is traceable. The Debtors' software allows them to be fully aware of where every diamond is and who has touched it.
The Debtors operate as midstream diamond buyers and suppliers, whereby they purchase diamonds from mines which are then cut, polished or set and resold to commercial jewelry retailers. By its nature, the Debtors diamond business is a global enterprise with operations in numerous foreign countries including the United States, Belgium, Mauritius, Israel, Botswana, Hong Kong, the United Kingdom, and Thailand.
The company was co-founded in 1993 by Jean-Paul Tolkowsky, a seventh-generation diamantaire, with Leon and Lior Kunstler. The Tolkowsky name is well known in the diamond industry. Marcel Tolkowsky, invented the ideal-cut round brilliant diamond in 1919 and Tolkowsky was chosen by De Beers to cut the 546-carat Golden Jubilee diamond, the largest faceted stone in the world.
Earlier this year, the Debtors lost their status as one of De Beers' primary customers, known as sightholders, as they have been buying fewer diamonds from the top producer in recent times. The Debtors are now accredited buyers, meaning they are not guaranteed a set supply of rough diamonds and instead buy on a more ad hoc basis.
Litigation with KBC Group NV
In July 2017, a Belgian court ordered lender KBC Group NV, a Belgian bank, to return seized assets from the Debtors. In its ruling, the court found that the Debtors were on track to repay loans to KBC by 2020 as planned, so the seizure of assets was unnecessary. At that time, KBC was seeking to recover 26 million euros ($30 million U.S. dollars). It is also reported that the Debtors have credit lines with Standard Chartered Plc.
KBC Bank NV continues to pursue a legal action before a Belgium court which seeks to seize and liquidate the assets of Debtor Exelco NV.
First Day Motions
No first day motions have yet been filed.
If we can be of service, please contact me. We will be happy to discuss first day motions when they are filed and forward an updated link upon request to the documents.
Thank you,
Rafael X. Zahralddin-Aravena
Commercial Bankruptcy and Commercial Restructuring Chair
Elliott Greenleaf P.C.
The I.M. Pei Building
Wilmington, Delaware 19899
Direct: 302-384-9401
Cell: 302-545-2888
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Top 20 Creditors
Eurostar Diamond Traders
Antwerp, Belgium
Trade Debt
$6,039,394.90
I.D.H.
Diamonds
NV
Antwerp, Belgium
Trade Debt
$3,198,490.55
Vitraag
BVBA
Antwerp, Belgium
Trade Debt
$2,526,354.13
Trau Bros
NV
Antwerp, Belgium
Trade Debt
$2.514.217.43
N. Shah & Co. BVBA
Antwerp, Belgium
Trade Debt
$2,341,433.60
Rottenberg Mardochee
Antwerp, Belgium
Loan
$1,155,131.25
De
Hantsetters en Verhaere NV
Antwerp, Belgium
Trade Debt
$1,140,577.37
Pinkusewitz diam traders ltd
Ramat Gan, Israel
Trade Debt
$781,788.07
Rosy Blue Sales Ltd.
Ramat Gan, Israel
Trade Debt
$701,202.00
Da Trading DMCC
Dubai, U.A.E
Trade Debt
$673,938.00
Desert Diamonds LLC
Dubai, U.A.E
Trade Debt
$555,456.88
Segaldiam LTD
Ramat Gan, Israel
Trade Debt
$536,204.94
Minda Brothers
Antwerp, Belgium
Trade Debt
$434,998.80
Kiran Gems Private Limited
Mumbai, India
Trade Debt
$400,457.80
Mahendra Brothers Exports PVT. Ltd.
Mumbai India
Trade Debt
$398,893.31
K.
Girdharlal International LTD
Mumbai India
Trade Debt
$304,405.10
Mishal NV
Antwerp, Belgium
Trade Debt
$282,643.70
Fischler
Antwerp, Belgium
Trade Debt
$280,150.10
M. Suresh Company PVT.LTD
Maharashtra, India
Trade Debt
$268,527.85
Jewelex Antwerp NV
Antwerp, Belgium
Trade Debt
$238,177.05
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