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Eliazarov Receiver Tells Court of $10M Shortfall
By Jeanette Goldman Posted: 10/19/05 08:38
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(Rapaport…October 19, 2005) Temporary receiver for Eliazarov Reuben & Sons Diamonds, Chen Berdichev, told the Tel Aviv Magistrates Court on October 17 that there was a shortfall between the company’s diamond exports and its deposits with Israel Discount Bank, reported Globes on October 19.

Berdichev informed the court that Eliazarov had exported $62 million worth of diamonds of which only $47 million had been deposited at the bank. Following the company’s appeal to the Israel Diamond Exchange (IDE), Eliazarov repaid $5 million, leaving an outstanding shortfall of $10 million.

In June, two weeks before the company declared insolvency, Eliazarov exported a net $8.3 million worth of diamonds. Berdichev told the court that Eliazarov’s official figures show that the company’s exports nearly doubled in 2005 from $2.5 million per month to $4.5 million at the time when the company informed the IDE of its financial difficulties.

The temporary receiver pointed out that the majority of the proceeds from these exports were not paid to the company and that the company’s owners had no explanation for the multimillion shekel shortfall or for the unusual diamond exports in 2005.

Berdichev also said that he received information regarding payments amounting to hundereds of thousands of dollars and large returns of diamonds to some creditors even during July when the company ceased activity, reported Globes.

On July 17 Eliazarov Reuven & Sons Diamonds announced that it had difficulties repaying the company’s $34 million debt.

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