Fabrikant Assets Being Sold off In
The U.S. Bankruptcy Court in the Southern District of New York has approved the sale of
assets of diamond wholesale giant M. Fabrikant and Sons Inc.

According to The Associated Press, Wilmington Trust CO. and Surya Capital LLC won the
right to purchase inventory and other assets from the diamond wholesaler, which had filed
for Chapter 11 bankruptcy protection last fall.

The AP reported that Wilmington Trust is a corporate lender based in Wilmington, Del.
According to court papers, the company paid $41.5 million for the assets. Records did not
indicate how much Surya Capital, a distressed hedge fund, would pay.

Closing date for the sale is June 8, according to court documents.

Fabrikant gained court approval to auction assets in April. Assets cited in court papers
included inventory from both M. Fabrikant and Sons and Fabrikant-Leer International,
accounts receivable from both companies and the 27 percent interest that Fabrikant holds
in Fabrikant-Tara International.

The minimum reserve prices that Fabrikant, in consultation with retained professionals,
had set for its assets totaled $48.5 million, court papers said.

At the time of its Chapter 11 filing, Fabrikant cited annual sales of $370 million and said it
owed lenders about $161.9 million.

It is unclear what the impact of the asset sale will be on the 112-year-old company.
Fabrikant Chief Executive Officer Matthew Fortgang, representing both M. Fabrikant and
Sons and Fabrikant-Tara International at the JCK Las Vegas show. would not comment on
the assets sale.

Posted by Barry Gutwein on June 5,20071:58 PM in Diamond News I

 

Rapaport TradeWire – Friday, December 04, 2009
By Rapaport
Rapaport TradeWire®
Frida~ December 04, 2009

Invitation to Bid for Henry Dunay Designs Inventory
Those interested in bidding for inventory of Henry Dunay Designs Inc. have until
December 15 to submit a final and best offer. A court-sanctioned auction will be held
on the following day. Surya Capital had already proposed a bid of $3,405,000 in cash
at closing. Interested parties should contact Henry Dunay Designs' counsel, Jay L.
Silverberg, Esq. of Sills Cummis & Gross P.c. at 212.643.7000.

Liquidated jewelry worth $1.5M sells in a flash

New York-Two liquidators who were brought In by secured
lenders to sell $1.5 million worth of jewelry inventory that
was previously in the vaults of Shine Diarn, Inc. and J Designs By Shine say they sold two bulk lots in record time
just before Christmas.

In early December, secured lender New York-based Surva
Capital, which had acquired the two jewell)' companies'
inventories, sought the services of Buxbaum Jewell)'
Advisors. of Agoura Hills, Calif., and LiquiTec Industries.
requesting that the liquidation firms team up to sell the
goods before the end of the year.

"The secured lenders needed the sale finished in fewer than
10 days," said Stevan Buxbaum. Buxbaum Group's
executive vice presrdent, in a press release. "The deadline
was Dec. 31 st. and we were finished with the sale by the
23rd."

The liquidation auction itself ultimately took two days, while the entire process--from vlewH1g of the mventorv through
final sale •-stretched over 10 days.
Though the merchandise was valued at $1.5 million at cost, the lender would not allow the liquidators to disclose the
total auction revenues, Buxbaum said in response to an inquiry from National Jeweler
"However. thev were haoov with the recoverv. which was within the tolerance ranae of what thev were
seekina." he said.

The quick turn-around is proof positive that the demand for closeout merchandise continues to be strong among
secondary-market buyers, companies that then resell the pieces to jeweily retailers who are looking to boost their
margins by diversifying their offerings, Buxbaum said. The two bulk lots included more than $1.5 million in diamonds, colored stones, finished Jewelry and approximately
17.000 grams of 14-karat gold. All toto, the hundreds of rings, necklaces, pendants earnngs bracelets and bangles
contained more than 2,500 carats of diamonds, 11,000 carats of loose gems and 15.000 grams of 14-karat white and
yellow gold pieces, all with gemstones according to Buxbaum "Like the rest of retail, the jewelry Industry IS looking for value, and closeout merchandise offers an excellent
opportunity for chains to diversify their offerings at low cost," Buxbaum said. The current interest in using gold as a repository of value also contributed to the success of this sale, he adds Prices
were hovering at around $1,100 an ounce at press time. Buxbaum also handled recent successful sales of jewelry inventones from retailers and manufacturers Including
Henrick's Jewelers and House of Taylor.