LKI Pays Banks $14M

(IDEX Online News) - Lazare Kaplan International Inc. settled its approximately $64 million obligations with ABN AMRO Bank and the Royal Bank of Scotland. ABN AMRO and RBS were lenders to the company and some of its affiliates.

LKI said Thursday that it paid the two banks $14 million to settle its loans that are now "deemed satisfied in full."

In addition, ABN AMRO agreed to transfer to LKI 2,151,103 shares (approximately 26%) of the company’s outstanding common stock held by it. Further, ABN AMRO assigned to the LKI ABN AMRO’s rights under certain insurance policies including rights to receive proceeds under these insurance policies. 

"ABN’s assignment to the Company includes the payment of amounts that the Company may receive with respect to any settlement reached or judgment rendered in certain lawsuits pending in the United States and the United Kingdom relating to such insurance policies," LKI said in a statement.