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Israel’s Esskay Diamonds Informs the Exchange it Owes Almost $5M

Jan 28, 2009 8:35 AM   By Avi Krawitz
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RAPAPORT... In another example of the tough market conditions in the Ramat Gan bourse, Esskay Diamonds notified the Israel Diamond Exchange (IDE) that it is having difficulty settling its debts. The company reported that it owes other diamond companies $3 million and the banks a further $1.8 million. An IDE spokesperson confirmed that Esskay Diamonds has not closed, nor has it declared bankruptcy.

Esskay joins a growing list of companies that are facing difficulties in meeting their obligations as a result of the slow trade in the exchange and tightened credit conditions of the past four months. This past week, diamond trader Ady Legziel closed his business with a debt of approximately $1.6 million, and in December, the owners of Jacob Eizenman Diamonds were arrested for trying to evade their $1.2 million debt to other diamond companies.

Esskay Diamonds could not be reached for comment by press time. Meanwhile, New York-based Esskay Gems made a point to inform the trade that it should not be confused with other companies with similar names. Esskay Gems posted a notice at the Diamond Dealers Club (DDC), and informed Rapaport News, that it is "not affiliated with any other company of similar names either in the U.S. or overseas." 

Tags: Banks, Israel, Israel Diamond Exchange
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