One of the largest diamond companies, Eurostar Diamond Traders that began its journey in the late 70s has filed for bankruptcy with a debt amounting to Rs 3000 Cr.
With this, the industry believes that getting finance is going to get tougher. Owned by Kaushik Mehta, the company owes $500 million (3500 cr) to banks and as a result of its current financial condition, it has lost its De Beers sightholder status.
The Antwerp court rejected Eurostar's appeal that was filed last month requestion protection from the creditors citing improper financial reports as the reason.
Eurostar has an office in Bharat Diamond Bourse and most of the company's diamonds are manufactured out of Surat.