The announcement coincided with its full-year results, with growth driven by its jewelry brands.
Bankruptcy Court OKs A. Jaffe, Firestar Sale
The approval came despite the objection of Punjab National Bank, which claimed the sale process is rushed and that questions remain.
New York--A U.S. bankruptcy court has approved the expedited sale of
The ruling was made Wednesday at a hearing held in in New York, and came despite the protests of Punjab National Bank (PNB).
PNB, the state-owned bank Modi allegedly cheated, filed an objection to the sale early Wednesday morning before the hearing, calling the sale process “extraordinarily expedited” and “highly aggressive.”
The bank gave a list of reasons why the sale should be halted or, at the very least, pushed back a month.
PNB said it hasn’t been given the information it needs to help it determine if any of the companies’ assets were purchased using funds fraudulently obtained from the bank, and also stated in its filing that “enormous unanswered questions about the involvement of debtors and their management in the Modi fraud” remain.
“It is imperative that the sale process slow down,” PNB said in its objection, noting that a deceleration would encourage more and better bids while giving the bank more time to obtain information and “better understand the connections, if any, between the debtors and the Modi fraud.”
RELATED CONTENT: Nirav Modi Case Is ‘Another Nail in the Coffin’In its order approving the sale, the court did not address or mention any of PNB’s concerns, stating only that A. Jaffe and Firestar have provided “good and sufficient notice” of the sale to all parties interested and have engaged in a process to solicit the “highest and best” offers for the companies’ assets.
“I don’t know what happened overseas,” Ian Winters, the attorney representing A. Jaffe and Firestar/Fantasy, said Thursday when asked about PNB’s objection.
“I think the debtors have been clear from day one that they were not involved in what happened overseas. If PNB believes they have claims, they are entitled to pursue whatever investigative actions they choose.”
He added: “We can’t control what PNB alleges. They put whatever they want to put in their [objection]. At the end of the day, the judge considered their papers, and considered what they had put in their papers, and the judge granted our request.”
The attorneys representing PNB did not respond to requests for comment on the ruling.
RELATED CONTENT: The Nirav Modi Case: What Else We Learned This WeekA. Jaffe Inc. and Firestar Diamond Inc./Fantasy Inc. filed for Chapter 11 bankruptcy protection on Feb. 26.
Winters said they have been trying to sell the companies since the Chapter 11 filing, and currently have 25 potential purchasers that have signed non-disclosure agreements.
The companies are being sold via sealed bids, with the deadline for the bids set for April 27, and the sale to be finalized by May 15.
Winters said the companies can be sold separately—Firestar with Fantasy Inc. and A. Jaffe with its division, FFJ—or together.
The Latest
Looking ahead, the retailer said it sees “enormous potential” in Roberto Coin’s ability to boost its branded jewelry business.
Jewelry trade show veterans share strategies for engaging buyers, managing your time effectively, and packing the right shoes.
Despite the rising prices, consumers continue to seek out the precious metal.
This little guy’s name is Ricky and he just sold for more than $200,000 at Sotheby’s Geneva jewelry auction.
Though its website has been down for a week, Christie’s proceeded with its jewelry and watch auctions on May 13-14, bringing in nearly $80 million.
Despite the absence of “The Allnatt,” Sotheby’s Geneva jewelry auction totaled $34 million, with 90 percent of lots sold.
Tradeshow risks are real. Get tips to protect yourself before, during and after and gain safety and security awareness for your business.
Lilian Raji gives advice to designers on how to make the most of great publicity opportunities.
The mining company wants to divest its 70 percent holding in the Mothae Diamond Mine in an effort to streamline its portfolio.
Why do so many jewelers keep lines that are not selling? Peter Smith thinks the answer lies in these two behavioral principles.
The “Argyle Phoenix” sold for more than $4 million at the auction house’s second jewels sale.
The annual list recognizes young professionals making an impact in jewelry retail.
Owner David Mann is heading into retirement.
While overall sales were sluggish, the retailer said its non-bridal fine jewelry was a popular choice for Valentine’s Day.
The mining giant also wants to offload its platinum business as part of an overhaul designed to “unlock significant value.”
Christie's is selling one of the diamonds, moving forward with its Geneva jewelry auction despite the cyberattack that took down its website.
Retailers can customize and print the appraisal brochures from their store.
The move follows a price-drop test run in Q4 and comes with the addition of a “quality assurance card” from GIA for some loose diamonds.
The site has been down since Thursday evening, just ahead of its spring auctions.
The late former U.S. Secretary’s collection went for quadruple the sale’s pre-sale estimate.
Three fifth graders’ winning designs were turned into custom jewelry pieces in time for Mother’s Day.
Kimberly Adams Russell is taking over the role from her father, David Adams, marking the third generation to hold the title.
As a token of womanhood, this necklace depicts when Venus was born from the sea.
Show your mother some love with a piece of fine jewelry.
The company’s Easton location will remain open.
Brian D. Fleming of Carla Corporation was elected to serve a one-year term in the role.