LKI Gets $60M from Insurers, Claims ADB Involvement in 'Loss or Theft'

(IDEX Online News) – Lazare Kaplan International reached a settlement with U.S. and UK underwriters, and will be paid $32 million for a filed claim. This comes in addition to $28 million it has already received, LKI said Wednesday.

LKI is ending its legal battle with the insurance companies, adding that it "retains all of its rights to pursue recovery of its assets against third parties."

The public company did not file its financial reports in the past two years, claiming has been unable to resolve material uncertainties.

The diamond firm reported to the Securities and Exchange Commission issues regarding the collectability and recovery of certain assets, saying it was unable to assess the potential effect these matters will have on its financial position and results.

LKI reportedly lost diamonds worth $140 million, leading to the insurance coverage claim and $60 million settlement.

This follows a 2010 agreement with ABN AMRO and the Royal Bank of Scotland, settling its approximately $64 million obligations by paying the two banks, collectively, $14 million.

LKI is still facing Antwerp Diamond Bank in court over an unpaid $43 million debt the bank claims is still outstanding. The company denies that it has any debt.

During its legal battles with ADB, LKI claimed that some of its assets were lost or stolen, stating on Wednesday in a release it's "understanding of the potential involvement of ADB and senior members of ADB's management with respect thereto."