Eurostar Enters Administration as Debts Mount

RAPAPORT... Eurostar Diamond Traders has entered restructuringproceedings in Belgium, having amassed substantial debts, according to the company'scourt-appointed administrator.The Antwerp-based diamond manufacturer owes morethan $500 million to creditors across its global operations, Alain Van den Cloot, a lawyer at de ClippeleAdvocaten, estimated in an email to Rapaport News. Two Antwerp courts designated Van den Cloot and a secondattorney, Nathalie Vermeersch, as provisional administrators for Eurostar'sBelgian business last month. Their roleis to help the company protect its assets and pay off its debts. "The reasons why [Eurostar] suffered those severe losses the last two years are under investigation," Van den Cloot explained. "Receivables should cover some debts, but if that's still the situation, I can't assess right now." The court documents list the trustees of bankrupt Antwerp-based diamond company Exelco among those that petitioned the court, as Eurostar owed theExelco estate $600,320 for an unpaid invoice.However, Eurostar was also the largest trade creditor of Exelco's US affiliate, as Exelco North America owed it about $6 million, according to that company's November 2017 Chapter 11 bankruptcy filing. Eurostar has lost its status as a De Beers sightholder, butis still operating, Van den Cloot added. The company did not respond to requests for comment at presstime.Image: A princess-cut diamond in tweezers. (Shutterstock)