Exelco North America, the Antwerp, Belgium diamond company currently operating under Chapter 11, has struck a deal to sell certain assets to liquidation company SimplexDiam for $6 million, according to a Nov. 28 court filing.
The assets involved in the sale include all of the diamonds held by the company at its New York City and Antwerp locations, as well as at a related cutting and polishing factory and third-party grading lab. It also includes certain of its accounts receivable.
Exelco calls the sale “the most efficient method to maximize the value of the Debtors’ estates, preserve the Debtors’ business relationships, and fund the continuation of the Debtors’ business as it pursues a global restructuring.”
Debtor KBC Bank, which has objected to the bankruptcy case being filed in the United States, also filed a motion trying to block to the proposed sale.
“There is a bona fide dispute as to the Debtors’ authority to conduct this sale,” says the KBC objection. “This issue should be resolved before any sale is conducted or approved.”
Exelco North America filed for Chap. 11 on Sept. 26, along with related companies Exelco NV, FTK Worldwide Manufacturing BVBA, and Ideal Diamond Trading.