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Receivership Order Issued on Israeli Diamond Veteran Uri Schwartz
Jan 11, 2016 9:45 AM
By Rapaport News
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RAPAPORT... A
receivership order was issued for assets owned by the former Israel Diamond
Manufacturers Association (IDMA) president Uri Schwartz following unpaid debt
of more than $2 million (NIS 8 million), local daily Globes reported January 10.
Israel-based
Bank Leumi intends to foreclose the veteran diamond dealer’s home in the
upmarket Sea and Sun project in Tel Aviv and seize other assets, including an
apartment on Ben Yehuda Street in the Israeli city, the news report said.
Schwartz has “given up,” Globes
cited his lawyer Avichay Vardi as saying
in a meeting with senior bank officials. His borrowings are estimated at $19.9 million before a debt
arrangement. The $2 million owed to Bank Leumi was guaranteed by the Israel
Diamond Institute chairman Moti Ganz, who claims his guarantee is “no longer
valid,” Globes reported.
Schwartz Diamonds slipped in recent years, in line with a
downturn in the industry, according to the report. The business was based on
marketing diamonds to overseas customers from Far Eastern countries and the
U.S., the newspaper cited a Bank Leumi petition as saying, filed through the
lender’s law firm B. Levinbook & Co. Schwartz pleaded in response he had
been forced to discontinue the company’s activities after putting $13.5 million
of “owner’s loans” into the business, according to the report.
"I am in the situation of counting my last crumbs,” Globes cited Schwartz as saying in the minutes
of the meeting. “I cannot give any more than what I have."
Schwartz’s debts include $12.5 million to Discount Bank before
a debt arrangement, $2.1 million to Union Bank of Israel, various amounts to suppliers on the Israel Diamond
Exchange with whom he reached an arrangement, and to family members, the news report
cited a list produced by the former IDMA president as saying.
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Tags:
Israel, Israel Diamond Manufacturers Association, legal, Rapaport News, Uri Schwartz
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