Merrill, Fred Leighton Spar Over Jewels

Law360, New York (October 3, 2008, 12:00 AM EDT) -- Merill Lynch Mortgage Capital Inc. is vying for security interests in jewelery owned by Fred Leighton Holding Inc., which filed for bankruptcy after the financial giant tried to sell off part of the massive collection that secures the high-end jeweler's more than $180 million in debt to Merill.

On Thursday, Merrill sued Leighton in the U.S. Bankruptcy Court for the Southern District of New York, seeking declaration that it had first-priority security interests in several jewelry collections used as collateral for loans made by Merill, which...
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