Fabrikant in discussions

By: PolishedPrices

(16.08.06) / Retail

Fabrikant, the New York-based wholesale diamond company, is facing a couple of court filings from suppliers seeking over $7.5 million in unpaid invoices, according to sources close to the situation.

The company is understood to be in discussions with the parties and no further action has been taken. The lawsuits were filed by KP Sanghvi & Sons and Blue Star, two Indian diamond companies, in the US District Court, Southern District of New York in Manhattan in July and August respectively.

A source familiar with the cases said; “It is in the mutual interest of the banks, vendors and party involved that there is a mutual agreement”.

Last week, Fabrikant announced it had reached an agreement with its domestic lenders. It is still in discussions with its foreign lenders to obtain a similar understanding.

As part of a worldwide review of its operations, the company recently entered into a new joint venture with Tara Jewels, an Indian jewellery manufacturer.

Fabrikant, a fifth generation family run business, has over twenty companies in 10 different countries.