Royal Diamond Industries is about to close shop with a debt of $586,000 which the company’s owner Frank Chew, has to repay by February 6, 2009. If the payment is not made, an order for winding up the company can be made in the High Court.

The money is owed to a Singapore-registered company and diamond supplier, Diasqua. The latters winding-up action occurred in a 2007 agreement when it signed a settlement with Diamond Industries concerning a $1.15 million disputed sum. As per the agreement, Diamond Industries was required to pass on $564,000 from the sale of its two units located at Emerald Park condominium near Havelock Road, to Diasqua. Also, $586,000 was to be paid to the supplied through $50,000 worth of monthly installments. Diamond Industries was successful at transferring the money from sale proceeds but failed to pay the installments. This led to the court entering judgment against Diamond Industries in the latter part of 2008, ruling that the $586,000 to be paid with interest and costs.

But as Diamond Industries failed to make the payment, a winding-up petition was given to the company in early of January 2009, which will be heard on February 6, 2009.

Diamond Industries was set up in 1989, with the showroom located in Paya Lebar. It had gained popularity over the years as a retail outfit providing affordable but high-end diamonds, and in the popular days had occupied almost a quarter of the diamond market in Singapore, with an annual turnover of about $20 million.