Bank Pressure Forces Israeli Trader Ady Legziel to Close Business (Updated)
January 22, 09
Diamond trader Ady Legziel notified the Israel Diamond Exchange legal department that he cannot make payments. The level of debt to traders is estimated at $400,000. His debts to the banks are understood to be $1-$1.2 million. While Legziel’s debts to fellow traders are not very large, it seems that pressure by the banks have caused him to make the call that close his business. IDEX Online has learned that Israeli diamond industry officials contacted the banks to see if there is a way to allow Legziel to continue to work and pay his debts, to no avail. The IDE’s legal department is calling on creditors in the diamond industry to inform it about their level of debt. Legziel joins a growing number of businesses in the industry that collapsed in the past few months. Not all of the firms have large industry debts. Some Israeli traders quietly closed their businesses, paying off debts but no longer trade in goods. (Last update, Thursday 9:51 am)