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Banks Withdraw Classic Diamonds’ Working Capital, Export Facilities
Aug 7, 2012 4:23 AM
By Dilipp S Nag
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RAPAPORT... Classic Diamonds (India) Ltd. reported that a consortium of bankers has withdrawn various working capital and export financing facilities given to the company and have asked it to repay its outstanding balances.
Classic Diamonds is in the process of negotiation with the banks, which are covered by way of mortgagee of various properties and assets of the company, Classic Diamonds said in a notice to the Bombay Stock Exchange (BSE).
The company recently closed its diamond cutting and polishing factory in Surat and its jewelry manufacturing facility in Mumbai’s SEEPZ location. In February, Classic Diamonds explained that it did not require such large manufacturing facility in Surat after the company surrendered its Diamond Trading Company (DTC) sight. The company stated that its production can be undertaken at its present factory in Andheri, a suburb of Mumbai.
Classic Diamonds reported sales of $40.5 million (INR 2.26 billion) in fiscal 2012, representing a decline of 55 percent from the previous year. The company posted a net loss of $5.5 million (INR 303.9 million) during the year compared with a net profit of $1.1 million (INR 60 million) in fiscal 2011.
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Tags:
Classic Diamonds, diamonds, Dilipp S Nag, India, Rapaport
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