Parag Diamonds Wins A. Jaffe Bankruptcy Auction

Parag Diamonds was the winning bidder in the A. Jaffe bankruptcy auction, held May 3 in New York City, according to a notice of results filed in New York federal court.

No price or other details were provided.

Flourish City Holdings Ltd. was determined to be the backup bidder.

The auction of the 126-year-old company’s assets, which went forward without the customary “stalking horse” bidder, attracted four qualified bidders and went through several rounds of bids, the notice said.

The auctions of two related companies, Firestar Diamond and Fantasy Inc., were originally also supposed to take place on May 3. However, on May 1, those two auctions were adjourned to a date “to be determined.”

Parag Diamonds, which is also known as Paramount Gems, is a seventh-generation diamond company that has been based in New York City since 1978. The company did not return a phone call from JCK by press time.

A. Jaffe’s Chapter 11 filing included subsidiary companies Sandberg & Sikorski Corp., Firestar Fine Jewelry, and Preferred 105.

A spokesperson for the jewelry brand tells JCK that it plans to issue a statement on the purchase later in the week but could not comment at this time.

A. Jaffe, Firestar Diamond, and subsidiary Fantasy Inc. were formerly owned by Nirav Modi, who has been accused of defrauding state-owned Punjab National Bank (PNB) of some $2 billion. Modi’s attorney has denied the charges. The Indian billionaire’s current whereabouts are unknown.

Jaffe, Firestar Diamond, and subsidiary Fantasy Inc. filed for Chapter 11 on Feb. 26, saying that the fallout from the Modi scandal had caused disruptions in their business. The bankruptcy court approved the sale of their assets on March 29.

Jaffe’s bankruptcy counsel, Ian R. Winters of  Klestadt Winters Jureller Southard & Stevens, did not return a  phone call from JCK. A spokesperson for John J. Carney, the recently appointed examiner who will do a forensic analysis of the company’s books, declined comment.

Image courtesy of A. Jaffe

JCK News Director

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