Diamond co. Elazarov owes $39 million

The Elazarov family, Lev Leviev’s in-laws, are longstanding members of the Israel Diamond Exchange.

Diamond company Elazarov is in financial trouble, with an estimated $39 million in debts, including $10 million to Lev Leviev. Elazarov is owned by Leviev’s in-laws.

The Elazarov family is a longstanding member of the Israel Diamond Exchange. Elazarov has rough diamond interests in Russia and produces polished diamonds.

Elazarov owes the $4 million to banks, and $35 million to other diamond merchants from whom it bought rough diamonds or to whom sold polished diamonds. Diamond Exchange sources believe that the company’s crisis will affect small and medium-sized diamond merchants.

Elazarov notified the Diamond Exchange today that it was having trouble meeting its obligations. The Diamond Exchange will establish a committee to formulate a creditors arrangement in the coming days, in order prevent Elazarov’s collapse. Elazarov has an estimated 250-300 creditors.

Published by Globes [online], Israel business news - www.globes.co.il - on July 18, 2005

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