Massive Debt, High Stakes
Compass, which purchased just under 60% equity in Lugano for $256 million in 2021, holds all of the company’s secured debt. That includes $212 million in revolving loans, $467 million in term loan obligations, and $2.63 million in letter-of-credit debt.
Among Lugano’s 30 largest unsecured creditors, all but two are “diamond claimants,” each asserting more than $1 million in losses.
Founded in 2005 by Ferder and his wife Idit, Lugano grew into an ultra-luxury brand with jewelry priced over $1 million, a loose-diamond business, an equestrian division, philanthropic ventures, and even an exclusive private social club designed to attract elite clientele.
Counsel
Lugano is represented by Young Conaway Stargatt & Taylor LLP and Keller Benvenutti Kim LLP.
Compass is represented by attorneys from Polsinelli PC and Squire Patton Boggs LLP.
ERF is represented by Riemer & Braunstein LLP and Ashby & Geddes PA.
The U.S. Trustee’s Office is represented by Timothy Jay Fox Jr.
