Waldman Diamond Company in New York Initiates Chapter 11 Moves

(IDEX Online) – The Waldman Diamond Company in New York has initiated Chapter 11 proceedings in direct response to legal action by Israel's Bank Leumi demanding immediate repayment of its long-standing rolling credit facility.

The Waldman Diamond Company in New York is part of the Waldman Diamond Group, headquartered in Israel, which also includes separate and sister companies in the Far East, Canada and Israel. WDC New York was established in 1978 and supplies polished diamonds to the wholesale and retail jewelry trade across the United States. The company has banked with Bank Leumi for 35 years.

Bank Leumi announced in January that it would shut down its diamond and jewelry financing operations in the United States, having already withdrawn from the Israeli diamond industry in 2013, indicating that they would give their clients adequate time to make alternative arrangements.

WDC Group CEO Alexander Waldman said: “We are defending ourselves against an aggressive and underhanded attack by Bank Leumi. Having announced its departure from the diamond industry, they have shown no interest in the welfare and stability of its customers. We have taken robust defensive action in order to ensure the long-term continuity of our U.S. business, to protect our staff, and to enable us to maintain the reliable service that we provide to our customers.

"As a result of our protective action, the lawsuit against the company has been withdrawn and WDC New York is operating as usual. We are confident that, after restructuring our banking in New York, the company will come out of Chapter 11 stronger and more robust than before.”