Dostov Notifies Israeli Exchange of Financial Difficulties

For the second time in a week, an Israeli diamond company has notified the Israeli Diamond Exchange (IDE) that it can’t pay its debts. Dostov Diamonds notified the IDE yesterday (Tuesday) that it cannot meet its financial obligations.

After Eliazarov Rueven & Sons announced its insolvency on Sunday, Dostov Diamonds advised the IDE of its financial difficulties and asked for its help in settling its debts.

The company told Exchange management that in its opinion most of its debts can be settled. The IDE believes it is possible, therefore, to resolve the issues with most of Dostov’s creditors among the diamond companies as part of a general settlement.

This second fall in just a few days has rocked the Israeli diamond industry. Some diamantaires are agitated by the situation, stating that it could have been easily avoided if companies acted more cautiously when the first signs of financial problems surfaced.

It is not known yet how much Dostov owes and to whom, but it is understood that the debt is much smaller than Eliazarov’s which is estimated at around $40 million.

The exchange said that one of the causes of Eliazarov’s difficulties was “giving its clients large credit”.