The Finlay/Carlyle saga may not be over … last week, the bankruptcy court ruled that Adamas Corp. must go through with its previously announced plan to buy 14 Carlyle Stores.
Two months ago, Adamas’ Russell Cohen, the original founder of Carlyle, canceled his plan to buy the chains after an unnamed vendor withdrew its support. The bankruptcy trustee for Finlay wasn’t happy, and went to court.
The court ordered:
– Adamas to comply with previous sales orders.
– Adamas to pay the debtor (Finlay) the aggregate amount of $733,766 within five business days;
– Adamas to reimburse Finlay for fees and expenses incurred in connection with attempting to induce Adamas to comply with the sale order.
It should be noted that the order is directed at Adamas, rather than Russell Cohen, who was named in the debtors’ court filing. And it could be hard to get that money out Adamas; previous filings called it a “shell corporation with no meaningful assets.”