Jeweler Blames Bankruptcy On Merrill Subprime Woes

Law360, New York (April 17, 2008, 12:00 AM EDT) -- Jeweler Fred Leighton Holdings Inc. has filed for Chapter 11 protection to block creditor Merrill Lynch from selling off part of a massive collection of jewelry that secures Fred Leighton's $181 million debt.

Fred Leighton Holdings filed its Chapter 11 petition with the U.S. Bankruptcy Court for the Southern District of New York on Tuesday.

According to an affidavit signed by owner Ralph O. Esmerian, the company had $271 million in assets, $188 million in liabilities, and $83 million in stockholders' and members' equity, as of...
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