Antwerp diamond company’s safes sealed over debt

ABN Amro bank had Belgian authorities seal the safes of Arjav Diamonds in Antwerp after negotiations regarding the company’s €117 million debt failed. Arjav Diamonds ‎is filing a counter-claim against the bank for €175 million for damages incurred to the ‎group, and court appearances are expected on Thursday.‎ ‎“We have a commercial dispute with ABN Amro. A large variety of abuses spread ‎over many years by ABN Amro have inflicted substantial financial damages to the Arjav ‎group,” Ashit Mehta, a director of Arjav Diamonds, told Rapaport News. “Fortunately, the ‎profitability and viability of the diamond business has enabled Arjav to absorb these ‎losses. Liquidity and equity of Arjav Diamonds today is solid.”‎ He did not disclose the value of the goods that were sealed but stressed that the ‎bank’s action affected only the safes in Antwerp and that the goods are still in ‎Arjav’s possession. Mehta said Arjav’s total bank debt in Belgium amounted to €292 million among ABN ‎Amro, Standard Charter Bank, Bank of India, ICICI Bank and the State Bank of India, but that the company’s dispute is only with ABN Amro. The four others have ‎reportedly requested a meeting with ABN Amro. ‎He also claimed that Ernst & Young, acting on behalf of ABN Amro, had since forwarded letters to Arjav’s clients ‎requesting that they make payments directly to ABN Amro, but said most of the ‎company’s receivables had been paid.