Esskay Diamonds in Financial Difficulties
January 28, 09The Israel Diamond Exchange met with Wednesday with Esskay Diamonds Ltd., an Israeli diamond trading firm, over reports of a returned check. Esskay notified the IDE that it has about $3 million in debts to the trade and another $1.8 million in debts to the banks, according to the IDE.
Esskay is not closing down or declaring insolvency. The firm, with the IDE’s help, is looking for ways to reduce its debt and arrive at a payment schedule.
The firm is the third IDE member to turn to the Exchange in less than a month. Last week diamond trader Ady Legziel notified the IDE 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.
Late last month, Gil and Yaakov Eizenman, father and son members of the IDE, notified the Exchange that they cannot pay their debts to fellow traders. Their debts were estimated at $1.2 million. The Eizenman’s claimed that they were robbed of $1 million worth of goods in London the week before. In this case, police investigators arrived at the IDE following a suspicion of wrongdoing on the part of the two.