M. Fabrikant $41.5 million credit bid asset sale approved

By Caroline Salls

Pittsburgh, May 30 - M. Fabrikant & Sons Inc. obtained court approval of the $41.5 million sale of some of its assets to lender agent Wilmington Trust Co., according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, Wilmington will assume liabilities associated with the assets and will offset $41.5 million of the company's secured debt.

The acquired assets include third-party accounts receivable, inventory, including intellectual property, M. Fabrikant's 27% interest in Fabrikant-Tara International LLC and other assets, including furniture and equipment.

The sale is expected to close by June 8.

M. Fabrikant, a New York-based manufacturer and distributor of diamonds and gemstone jewelry, filed for Chapter 11 on Nov. 17, 2006. Its case number is 06-12737.

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