The owner of Manhattan jeweler Fred Leighton has filed for Chapter 11 bankruptcy protection, halting a Christie's auction of millions of dollars of his antique gems. According to various news sources, Ralph Esmerian, who bought Fred Leighton for $100 million in 2006 using a $178 million loan from Merrill Lynch and Co., filed the petition on Tuesday. Merrill Lynch had attempted to force Fred Leighton to participate in the auction to recoup some of the money owed to them and had even won a court ruling that would have allowed the auction to proceed.

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