Source AP ©

M. Fabrikant & Sons Inc plans auction

M. Fabrikant & Sons Inc., diamond wholesaler, has asked a judge for permission to begin enticing bidders for an auction of its assets slated for early May.

The request, filed with the U.S. Bankruptcy Court in Manhattan on Tuesday, solidifies the company's earlier assertions that it may liquidate rather than reorganize.

Under the auction plan, privately held M. Fabrikant would sell all its assets, including inventory, accounts and intellectual property. It would then file a liquidation plan with the court.

Under the proposed auction rules, any stalking-horse, or lead bidder, would be offered payment for fees and costs worth up to 2 percent of the bid or $200,000 (147,000 EUR), if the offer is lost at auction.

The judge overseeing the jewelry company's bankruptcy case will decide whether to approve the rules at a hearing on April 26.

M. Fabrikant has been under Chapter 11 bankruptcy protection since Nov. 17 after lenders "froze" its bank accounts. Lenders include ABN Amro Bank, Antwerpse Diamantbank, Bank of America, HSBC Bank USA, Israel Discount Bank of New York, JP Morgan Chase and Sovereign Bank. Fabrikant owed them about $161.9 million (119 million EUR) as of December.

The 112-year-old New York company is one of the world's largest manufacturers and distributors of diamonds and gemstone jewelry.

M. Fabrikant & Sons owns 81 percent of domestic unit Fabrikant-Leer International Ltd., which is also in Chapter 11. Fabrikant directly and indirectly owns over 40 companies in 10 countries.

Representatives of the Israeli Defence Ministry responded to recent reports about the possible delivery of S-300 SAM systems from Russia to Syria. Israeli Defence Minister Avigdor Lieberman said that Israel would destroy those systems

Israel vows to destroy Russia's S-300 in Syria in case of danger
Comments
Putin: Russia's young scientists build world's most powerful arms system in 7 years
Israel vows to destroy Russia's S-300 in Syria in case of danger
Russia wants to be prepared for most severe sanctions that Washington is working on
Russia wants to be prepared for most severe sanctions that Washington is working on
Russian Air Force shows how NATO ships can be destroyed. Video
Two women fall victims to Moscow plastic surgeons in two weeks
World War Three is near? The West wants to bypass Russia's veto at UN Security Council
Israel can learn many lessons with the help of Russia's S-300 air defence systems in Syria
Russian Air Force shows how NATO ships can be destroyed. Video
UK's Lehram fails to challenge the sale of Kuzbass mine
Ukraine loses nearly 4,000 military men killing fellow Ukrainians in Donbass
World War Three is near? The West wants to bypass Russia's veto at UN Security Council
Israel can learn many lessons with the help of Russia's S-300 air defence systems in Syria
Putin to sign new decree to spend ten trillion rubles on social needs
World War Three is near? The West wants to bypass Russia's veto at UN Security Council
Large lake of boiling water found on Mars
Israel can learn many lessons with the help of Russia's S-300 air defence systems in Syria
World War Three is near? The West wants to bypass Russia's veto at UN Security Council
Israel vows to destroy Russia's S-300 in Syria in case of danger
Israel vows to destroy Russia's S-300 in Syria in case of danger
Putin to sign new decree to spend ten trillion rubles on social needs