National Gold Exchange, which bills itself as the world's largest wholesaler of rare gold and silver coins, is fighting for survival after its bank declared its loan in default.Based at 14309 N. Dale Mabry Highway, National Gold Exchange filed for Chapter 11 bankruptcy protection Friday in U.S. Bankruptcy Court in Tampa.
The company lists estimated assets of $10 million to $50 million and estimated liabilities of $50 million to $100 million. Chapter 11 bankruptcy protects a company from its creditors while it reorganizes its finances.
The move comes as Sovereign Bank declared National Gold Exchange in default of $35 million in loans.
The bank claims in a Hillsborough circuit court lawsuit that National Gold Exchange and its owners, Mark and Alan Yaffe, violated certain loan covenants, and it demands repayment.
The bank also alleges in its suit that National Gold Exchange sold up to $15 million in valuable coins to pay for a multimillion-dollar home for Mark Yaffe in the pricey Avila community of north Hillsborough County.
Those coins were part of the collateral for National Gold Exchange's $35 million loans.
In a 2006 survey by the Tribune, Alan Yaffe's home in Avila was listed as one of the five largest in Hillsborough County.
Source: 2.tbo.com
