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Lazare Kaplan Subject to SEC Action over Failure to Submit Filings

Dec 31, 2015 2:09 AM   By Rapaport News
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RAPAPORT... The Securities and Exchange Commission (SEC) has filed administrative proceedings against Lazare Kaplan International Inc. alleging the New York diamond manufacturing firm failed to submit periodic reports since February 2009.

The SEC alleges Lazare Kaplan did not comply with the Exchange Act and it will consider whether to suspend trading in the company’s shares for up to 12 months or revoke its registration, according to a filing December 8.

In a response December 21, the company, listed on OTC Link, said it had been unable to resolve a “material uncertainty” over the collectability and recovery of certain assets and the company’s potential obligations under certain lines of credit and a guaranty. These uncertainties resulted in the company bringing a lawsuit against Belgium’s KBC Bank N.V. and its now defunct subsidiary Antwerp Diamond Bank N.V. in 2011.

Successfully resolving the uncertainties, including the lawsuit, would let the company finalize its financial statements and file the relevant forms, according to the response.

The company expects the administrative law judge assigned to the proceeding will issue an initial decision by April 9. The company said it does not expect to be up to date with filings by then. Should it have its registration under the Exchange Act revoked, Lazare Kaplan intends to re-register its common stock, but the company said it gives no assurance that it will resume being a publicly traded company.
Tags: Lazare kaplan, Lazare Kaplan International Inc., legal, Rapaport News, Securities and Exchange Commission
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