Majors

Bankruptcy Court OKs A. Jaffe, Firestar Sale

MajorsMar 30, 2018

Bankruptcy Court OKs A. Jaffe, Firestar Sale

The approval came despite the objection of Punjab National Bank, which claimed the sale process is rushed and that questions remain.

New York--A U.S. bankruptcy court has approved the expedited sale of

A. Jaffe and Firestar Diamond/Fantasy Inc., the U.S. companies owned by Nirav Modi, the diamantaire accused of bilking an Indian bank out of billions.

The ruling was made Wednesday at a hearing held in in New York, and came despite the protests of Punjab National Bank (PNB).

PNB, the state-owned bank Modi allegedly cheated, filed an objection to the sale early Wednesday morning before the hearing, calling the sale process “extraordinarily expedited” and “highly aggressive.”

The bank gave a list of reasons why the sale should be halted or, at the very least, pushed back a month.

PNB said it hasn’t been given the information it needs to help it determine if any of the companies’ assets were purchased using funds fraudulently obtained from the bank, and also stated in its filing that “enormous unanswered questions about the involvement of debtors and their management in the Modi fraud” remain.

“It is imperative that the sale process slow down,” PNB said in its objection, noting that a deceleration would encourage more and better bids while giving the bank more time to obtain information and “better understand the connections, if any, between the debtors and the Modi fraud.”
RELATED CONTENT: Nirav Modi Case Is ‘Another Nail in the Coffin’
In its order approving the sale, the court did not address or mention any of PNB’s concerns, stating only that A. Jaffe and Firestar have provided “good and sufficient notice” of the sale to all parties interested and have engaged in a process to solicit the “highest and best” offers for the companies’ assets.

“I don’t know what happened overseas,” Ian Winters, the attorney representing A. Jaffe and Firestar/Fantasy, said Thursday when asked about PNB’s objection.  

“I think the debtors have been clear from day one that they were not involved in what happened overseas. If PNB believes they have claims, they are entitled to pursue whatever investigative actions they choose.”

He added: “We can’t control what PNB alleges. They put whatever they want to put in their [objection]. At the end of the day, the judge considered their papers, and considered what they had put in their papers, and the judge granted our request.”

The attorneys representing PNB did not respond to requests for comment on the ruling.
RELATED CONTENT: The Nirav Modi Case: What Else We Learned This Week
A. Jaffe Inc. and Firestar Diamond Inc./Fantasy Inc. filed for Chapter 11 bankruptcy protection on Feb. 26.

Winters said they have been trying to sell the companies since the Chapter 11 filing, and currently have 25 potential purchasers that have signed non-disclosure agreements.  

The companies are being sold via sealed bids, with the deadline for the bids set for April 27, and the sale to be finalized by May 15.

Winters said the companies can be sold separately—Firestar with Fantasy Inc. and A. Jaffe with its division, FFJ—or together.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

CD Peacock Mansion in Oak Brook, Illinois
EditorsNov 22, 2024
Out & About: Inside the CD Peacock Mansion

Step inside the nearly 21,000-square-foot suburban Chicago jewelry store with Editor-in-Chief Michelle Graff.

Xander Jane earrings
CollectionsNov 22, 2024
Piece of the Week: Xander Jane’s ‘Spiked’ Pearl Studs

These punk-inspired earrings from the new Canadian brand’s debut collection reveal the alter ego of the classic pearl.

Facets of Fire Pear and Marquise Diamonds
SourcingNov 22, 2024
Facets of Fire Expands to Include Pear, Marquise Diamonds

The company brings its nanotechnology to two new fancy cuts for diamonds that feature its signature color and brilliance.

Jewelers Mutual Group Cybersecurity
Brought to you by
Navigating Cybersecurity: Essential Guidance for Jewelers

From protecting customer data to safeguarding inventory records, it's crucial to learn how to tackle cybersecurity challenges.

5 main.jpg
Supplier BulletinNov 21, 2024
Tasha R Releases 2025 Labbelle Lab Diamond Jewelry Catalog

Sponsored by Tasha R

Weekly QuizNov 21, 2024
This Week’s Quiz
Test your jewelry news knowledge by answering these questions.
Take the Quiz
18-karat gold Tiffany & Co. pocket watch Captain Arthur Rostron
AuctionsNov 21, 2024
Gold Watch Gifted to Titanic Rescue Ship Captain Sells for $2M

Three Titanic survivors presented him with the personalized Tiffany & Co. timepiece about a year after the tragedy.

Cynthia Erivo wearing Have a Heart x Cynthia Erivo collection
CollectionsNov 21, 2024
Channel Elphaba in Muse’s ‘Have a Heart x Cynthia Erivo’ Collection

Cynthia Erivo chose Dreams of Hope, an organization dedicated to empowering LGBTQA+ youth, as the charity for this year’s collection.

Article-Top-Image.jpg
Brought to you by
Enhance Your Expertise with IGI’s In-Person Courses in NYC

This fall, sharpen your skills in jewelry grading, quality control and diamond assessment.

Mary Moses Kinney
IndependentsNov 21, 2024
Mary Moses Kinney Is Now Part of The Edge’s Team

Kinney, who spent nearly 30 years at IJO, has been hired to head Abbott Jewelry Systems’ new virtual marketplace.

Sotheby’s New York building
CrimeNov 20, 2024
Sotheby’s to Pay $6.25M Settlement to NY State for Alleged Tax Fraud

The auction house was accused of helping clients avoid paying taxes on millions of dollars’ worth of art purchased from 2010 to 2020.

Kering logo
Events & AwardsNov 20, 2024
Kering Debuts New Jewelry Award With Sustainability Focus

The four finalists will present their pieces at the 2025 JCK Las Vegas show.

Model wearing pieces from Camera Oscura collection
CollectionsNov 20, 2024
Pamela Love Channels Surrealist Artists in New Collection

The “Camera Oscura” collection showcases earring designs celebrating female Surrealist artists Claude Cahun and Leonor Fini.

Columbia Gem House “Pebbles to Pines” fundraiser
Policies & IssuesNov 20, 2024
Columbia Gem House Raises $10K for Reforestation Efforts

The money will fund the planting of 10,000 trees in critical areas across Oregon, Arizona, Montana, and other regions.

The jewelry symposium 2025
Events & AwardsNov 20, 2024
The Jewelry Symposium Opens Registration, Scholarship Applications

The event centered on advancing jewelry manufacturing technology will return to Detroit in May 2025.

Stock image of police cars with lights on
CrimeNov 19, 2024
Woman Killed in Armed Robbery of Sacramento Jewelry Store

Local reports identified the woman as the wife of the jewelry store owner.

Tsar Ferdinand I Bulgaria colored diamond pin and emerald diamond ring
AuctionsNov 19, 2024
‘A Tsar’s Treasure’ Fetches $2.9M at Sotheby’s Jewelry Sale

A collection of pieces owned by Ferdinand I, the first king of modern Bulgaria, and his family, blew away estimates in Geneva last week.

Trove NYC flagship exterior
MajorsNov 19, 2024
Trove Opens First US Flagship in NYC

The Australian jewelry box brand’s new West Village store will showcase new jewelers each month through its Designer in Residence program.

Snoop Dogg and Carolyn Rafaelian
CollectionsNov 19, 2024
Snoop Dogg’s New Jewelry Collection Is All About Love

“Lovechild” was created in partnership with Carolyn Rafaelian’s Metal Alchemist brand.

Helzberg CEO Brad Hampton
EditorsNov 18, 2024
Q&A: Helzberg CEO Brad Hampton on the Jeweler’s Rebrand

Hampton discussed how Helzberg is improving the customer experience and why it was inspired by the company formerly known as Dunkin’ Donuts.

Andrea Jose jewelry
Policies & IssuesNov 18, 2024
Reciprocity Jewels Returns to NYC Jewelry Week

The group will host several curated events and an exhibition of designer jewelry made with Peruvian gold traceable to the miners’ names.

Dolly Parton and Kendra Scott
CollectionsNov 18, 2024
Dolly Parton Shines in Collaboration with Kendra Scott

The collection honors the 50th anniversary of Dolly Parton’s “Love is Like a Butterfly” song, which shares a birth year with Kendra Scott.

IGI Expressions
Events & AwardsNov 18, 2024
IGI Jewelry Design Competition Returns

This year’s theme asks designers to take inspiration from classic fairy tales.

New York Comic Con Javits Center crowd
EditorsNov 15, 2024
Why Fine Jewelry Belongs at New York Comic Con

Senior Editor Lenore Fedow makes the case for why more jewelers should be appealing to nerds at the annual event.

Marie Lichtenberg and Raiz’in collection
CollectionsNov 15, 2024
Marie Lichtenberg Battles Counterfeits with New ‘Raiz’in Scapular’ Designs

The latest “Raiz’in” drop showcases a newly designed “Scapular” necklace and donates a portion of the proceeds to Make-A-Wish France.

Citizen 100th Anniversary Limited Edition #1 Pocket Watch
WatchesNov 15, 2024
Piece of the Week: Citizen’s Commemorative Pocket Watch

No. 1 out of 100, the timepiece was created to mark Citizen’s 100th anniversary and will be auctioned off at Sotheby’s next month.

My Next Question store security episode
Recorded WebinarsNov 15, 2024
Watch: 10 Tips to Keep Your Jewelry Store Secure

On the latest episode of “My Next Question,” two experts share best practices for store security during the holidays and year-round.

18th century diamond necklace
AuctionsNov 14, 2024
18th-Century Diamond Necklace Sells for Nearly $5M

Sotheby’s sold the necklace, which potentially has ties to Marie-Antoinette, for $4.8 million to a woman bidding via phone.

×

This site uses cookies to give you the best online experience. By continuing to use & browse this site, we assume you agree to our Privacy Policy