Attached files
| file | filename |
|---|---|
| 8-K - LAZARE KAPLAN INTERNATIONAL INC | v200263_8k.htm |
| EX-4.1 - LAZARE KAPLAN INTERNATIONAL INC | v200263_ex4-1.htm |
| EX-10.1 - LAZARE KAPLAN INTERNATIONAL INC | v200263_ex10-1.htm |
EXHIBIT
99.1
LAZARE
KAPLAN INTERNATIONAL ENTERS INTO SETTLEMENT AGREEMENT WITH ABN AMRO
BANK
AND THE ROYAL BANK OF SCOTLAND
New York,
NY – October 28, 2010 – Lazare Kaplan International Inc. (LKII.PK) (the
“Company”) announced today that it and certain of its affiliates entered into a
Settlement Agreement with ABN AMRO Bank N.V. and The Royal Bank of Scotland PLC,
with respect to certain obligations of the Company and/or its affiliates. Both
ABN and RBS were lenders to the Company and/or certain of its affiliates under
various credit facilities and guarantees, and as such the Company and its
affiliates incurred obligations to them totaling approximately $64
million.
As a
result of the Settlement Agreement, all of the approximately $64 million of
obligations were deemed satisfied in full.
In
addition, ABN agreed to transfer to the Company 2,151,103 shares (approximately
26%) of the Company’s outstanding common stock held by it.
Further,
ABN assigned to the Company ABN’s rights under certain insurance policies as
well as ABN’s rights to receive proceeds under such 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.
As part
of the settlement, ABN and RBS each released the Company from all of its
obligations and all claims relating thereto. In return, the Company released ABN
and RBS from certain claims asserted by the Company relating to the obligations
as well as other claims asserted by the Company relating to its relationship and
business dealings with each of ABN and RBS.
As part
of the settlement, the Company paid to ABN and RBS, collectively, $14
million.
Leon
Tempelsman, the President of LKI said, “This settlement is a recognition of
LKI’s efforts over the past two years to resolve its dispute with some of its
creditor banks. LKI will continue its efforts to resolve outstanding
disputes with all other relevant parties.”
Lazare
Kaplan International Inc. sells its diamonds and jewelry products through a
worldwide distribution network. The Company is noted for its ideal
cut diamonds, which it markets internationally under the brand name, Lazare
Diamonds®.
Except for historical information
contained herein, the statements in this release are forward-looking and made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements involve known and
unknown risks and uncertainties which may cause the Company's actual results in
future periods to differ materially from forecasted results. Those risks include
the ability to resolve its material uncertainties discussed above, filing
delinquent SEC reports, the quotation of the Company’s common stock on the Pink
Sheets marketplace, reapplying to a stock exchange for the Company’s common
stock to be again listed, and other factors. The information contained in this
press release is accurate only as of the date issued. Investors should not
assume that the statements made in these documents remain operative at a later
time. Lazare Kaplan International Inc. undertakes no obligation to update any
information contained in this news release.