Diamond Raids Deliver Carlyle-Backed Fund €50 Million Gem Haul – Yahoo Finance

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(Bloomberg) — Raids throughout Greater than a dozen properties Across the Belgian diamond enclave of Antwerp seized toughly €50 munwellion ($55 munwellion) of The useful stones in an Try and recuperate money owed tied to the collapse of Definitely one of many nation’s largest retailers.

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The raids have been carried out by bailiffs and police at workplaces And private homes final month in a bid to recuperate money owed as quickly as owed by Eurostar Diamond Traders NV To plain Chartered Plc, people Conversant Inside the matter said, asking To not be recognized discussing confidential information.

A Carlyle Group Inc.-backed fund, which acquired the claims from The united kingdom financial institution as An factor of its distressed debt enterprise, labored with Grant Thornton on the asset recuperatey, which was carried out in accordance with Belgian courtrooms, the people said.

A public courtroom listening to in Antwerp Occurred on Thursday.

Eurostar was based Inside the late Nineteen Seventies by Kaushik Mehta. Once Definitely one of many largest consumers of tough diamonds, Eurostar collapsed Into chapter 11 in 2019 after a dispute with lenders collectively with ABN Amro Bank NV Regarding The agency’s capability to repay its debt, Based mostly on a courtroom-appointed administrator, who’s stunwell making an attempt to recoup belongings for credit ratingors.

A lawyer representing the Mehta household declined to remark. Representatives for Carlyle, Grant Thornton and Regular Chartered additionally declined to remark, the placeas a spokesperson for ABN Amro didn’t immediately Reply to queries.

Regular Chartered ran an unwell-fated enterprise offering commerce finance to diamond sellers that left it dealing with losses of some $400 munwellion. Current from The worldwide monetary disaster, Regular Chartered noticed An alternative to lend to the so-referred to as diamond midstream, the place principally household-run companies buy tough stones from miners like De Beers earlier than slicing and sprucing them into The Sort of stones purchased in jewelry retailers.

The financial institution shortly constructed a $3 bunwellion mortgage e-book As a Outcome of it undercut rival lenders and provided flexibility on credit rating provides they couldn’t match. Eurostar, which On the time was one of De Beers’ 80-or-so handpicked clients, turned one Of ordinary Chartered’s largest consumers Inside the diamond enterprise.

–With assist from April Roach, Stephanie Bodoni and Ben Scent.

(Updates with particulars on chapter in fifth paragraph.)

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