Polar Ice Diamonds in Receivership, $41.6M in Debt Listed (Updated)
November 14, 10
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(IDEX Online News) - Canadian diamond and diamond jewelry wholesalers Polar Ice Diamonds and Polar Bear Diamonds, part of Arslanian Cutting Works, are in receivership, listing debts of C$21.6 million to ABN Amro (US$21.4 million), and an additional C$21 million (US$20.5 million) to a long list of unsecured creditors, many of whom are diamond firms.
The Ontario Superior Court of Justice appointed a receiver for all of the assets, undertakings and property of Polar Ice Diamonds (4114159 Canada Inc) and a related company, Polar Bear Diamonds (9135-8242 Quebec Inc).
Court documents list four secured creditors, ABN AMRO with a debt of C$21.6 million and C$249,000 owed to the Ontario Ministry of Revenue. Royal Gem Israel Ltd and Ofer Mizrahi Diamonds lnc are owed an unknown amount.
Ofer Mizrahi Diamonds confirmed to IDEX Online that the company has a secured debt of C$0.7 million.
Secured creditors are entitled to receive the proceeds of the foreclosure sale of the pledged assets and must be satisfied before the unsecured creditors.
In addition to the four secured creditors, court documents list some 170 unsecured creditors owed C$20.7 million. On the list are KGK with a debt of C$3.7 million, A. Monte (C$1.5 million) and Lazare (C$0.9 million).
The court appointed receiver, RSM Richter, stated that it is “unable at this time to estimate whether the realizable value of the assets will be sufficient to fully repay the obligations owing to the secured creditors.”
The company was not immediately available to comment.
(Last updated on November 16, 2010 10:26 am)