Belgium-based Exelco NV, a De Beers-listed customer, filed for bankruptcy in the US Bankruptcy Court in Wilmington, Delaware, back in September. Now, according to IDEX Online, bankruptcy Judge Kevin Gross dismissed the Chapter 11 case, ruling that “the cases would more properly be administered in Belgium”.
Gross’ ruling stated that “Exelco filed a voluntary insolvency proceeding in Belgium in July, but then withdrew that filing and transferred its case to the United States in a bid to prevent its largest creditor, KBC Group NV, from seizing and liquidating its assets”. The KBC Group had petitioned for the case to be heard in Belgium.
According to the filing in Belgium, Exelco owes $35 million to Standard Chartered and $15 million to KBC. In the papers filed in the US, the diamond company listed assets of between $10 million and $50 million, and liabilities of between $50 million and $100 million.
Exelco, founded in 1993, is based in Antwerp, and is listed as one of De Beers sightholders. It has two factories in Africa and Thailand. In July, it was reported by Bloomberg that “Exelco’s assets were seized by one of its lenders, KBC Group NV”. Exelco’s top three trade creditors are Eurostar Diamond Traders NV, I.D.H. Diamonds NV and Vitraag BVBA, to which Exelco collectively owes nearly $12 million.
