Parag Buys A. Jaffe's Assets at Auction

RAPAPORT... A US court has named Parag Diamonds as thesuccessful bidder for the assets of A. Jaffe, one of Nirav Modi's jewelrybrands. Four prospective purchasers attended the auction on May 3,participating in several rounds of bidding, according to a filing with the USBankruptcy Court for the Southern District of New York last week. While Paragwon, Flourish City Holdings emerged as the "backup" bidder, the document said. A. Jaffe is an affiliate of Firestar Diamond, a US companythat forms part of jewelry tycoon Modi's business empire. Firestar, A. Jaffeand Fantasy, another affiliate, filed for Chapter 11 in the US on February 26after Modi became the subject of an Indian fraud investigation. That probe resulted in the American companies losing thebulk of their supply chains and back-office support, making it almostimpossible to continue as businesses, Mihir Bhansali, the president of thethree companies, said in a court declaration on February 28. The court has adjourned the auction of Firestar andFantasy's assets indefinitely.