Modi Latest: Three Jewelers File for Chapter 11

RAPAPORT...Three companies in Nirav Modi's jewelry empire - A.Jaffe, FirestarDiamond, and Fantasy - have filed for bankruptcy in the US, with two of themhoping to find buyers soon.Indian investigators are probing allegations that Modidefrauded Punjab National Bank of $1.8 billion by obtaining unauthorized loans.The total amount could be about $200 million more than that, the lender said inan update Monday.A.Jaffe, a New York-based bridal-jewelry manufacturer, plansto restructure under Chapter 11 to preserve its operations and keep a clearseparation between it and the allegations against Modi. The events in India "will in no way harm [our] brand commercially," the company stressed in a statement Monday."A.Jaffe and its core team here in the US want to assurepartners and customers that A.Jaffe is not in any way involved with any of thealleged conduct that is the subject of the accusations," the company said. Thecompany's liabilities are between $10 million and $50 million, according to the Chapter 11 filing it submitted the same day.Firestar and Fantasy, which both manufacture jewelry, filedfor Chapter 11 protection to ensure stability of their operations and find abuyer quickly, they explained in a statement Tuesday. The companies expect to agreeon a sale to one or more companies in the next week. "The filings are a result of acute operational challengesthat the companies experienced when their supply chain was significantlydisrupted," the statement continued. Firestar listed liabilities of $50 million to $100 million,while Fantasy's estimate stood at $1 million to $10 million.