M. Fabrikant & Sons, Inc. said Monday that it has executed an agreement with its domestic lenders.

The new York-based diamond and jewelry company also said that it is currently “in discussions with its foreign lenders to obtain a similar understanding.” 

Published reports in June said that the company was in danger of insolvency. However, sources close to the company told JCK at that time that the rumors are not true and the company isn’t in financial trouble.

In other company-related news, it said that it is moving forward in a new venture with Tara Jewels, one of India’s largest jewelry manufacturers that involves the formation of a new entity, to be known as Fabrikant-Tara International LLC, and includes the operations of Fabrikant’s subsidiary Fabrikant-Leer International, Ltd. The company said it believes that the new entity will provide U.S. retailers with the best merchandise, quality, service, and pricing.

“We have had a long and rewarding relationship with Rajeev Sheth, chairman and managing director of Tara, and see this as the next step in continuing to be able to offer our valued customers the best products at the most advantageous cost,” Matthew Fabrikant Fortgang, president and chief executive officer of Fabrikant, said in a statement.

Fabrikant also announced that Matthew Fortgang has assumed all day-to-day responsibilities as chairman of M. Fabrikant & Sons, succeeding his father Charles Fortgang. Chuck Fortgang moves into a new role as chairman—emeritus.

JCK