Parag Buys A. Jaffe’s Assets at Auction

RAPAPORT… A US court has named Parag Diamonds as the
successful bidder for the assets of A. Jaffe, one of Nirav Modi’s jewelry
brands.

Four prospective purchasers attended the auction on May 3,
participating in several rounds of bidding, according to a filing with the US
Bankruptcy Court for the Southern District of New York last week. While Parag
won, Flourish City Holdings emerged as the “backup” bidder, the document said.

A. Jaffe is an affiliate of Firestar Diamond, a US company
that forms part of jewelry tycoon Modi’s business empire. Firestar, A. Jaffe
and Fantasy, another affiliate, filed for Chapter 11 in the US on February 26
after Modi became the subject of an Indian fraud investigation.

That probe resulted in the American companies losing the
bulk of their supply chains and back-office support, making it almost
impossible to continue as businesses, Mihir Bhansali, the president of the
three companies, said in a court declaration on February 28.

The court has adjourned the auction of Firestar and
Fantasy’s assets indefinitely.