Eurostar Diamond Traders Enters Bankruptcy

RAPAPORT... Eurostar Diamond Traders, one of the biggest names in theAntwerp industry, has entered bankruptcy following a legal battle with itsbanks. The Antwerp Corporate Court ruled Thursday in favor of thatoutcome. Eurostar plans to appeal the decision, according to the company'schairman and founder, Kaushik Mehta. "For Kaushik Mehta and Eurostar, this is a verydisappointing day, which he still is appealing and fighting," thediamond-manufacturing firm said in a statement to Rapaport News.Eurostar blamed its main lenders, ABN Amro and Standard Chartered, for beingtoo aggressive in demanding repayment of debts. Both banks declined to comment. The company owes an estimated $500 million, according tocourt-appointed administrator Alain Van den Cloot. Image: A diamond ring under inspection. (Shutterstock)