Lazare Kaplan Settles With Banks

Lazare Kaplan announced Oct. 28 that it had reached a settlement agreement
with ABN AMRO Bank and the Royal Bank of Scotland.
 
The diamond manufacturer and its affiliates had incurred obligations to the two
banks totaling approximately $64 million. As a result of the settlement
agreement, all of the obligations were deemed satisfied in full.
 
As part of the settlement, Lazare Kaplan paid a collective $14 million to ABN
and RBS.

In addition, ABN agreed to transfer to the company 2,151,103 shares
(approximately 26 percent) of the company’s outstanding common stock.

ABN also assigned to Lazare ABN’s rights under certain insurance policies
as well as ABN’s rights to receive proceeds under such insurance policies.
ABN’s assignment includes the payment of amounts that the
company may receive with respect to any settlement reached or judgment rendered
in certain lawsuits pending in the United States and the United Kingdom
relating to such insurance policies.