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Jeffrey L. Hartman, Esq., #1607
HARTMAN & HARTMAN
Facsimile: (775) 324-1818
E-mail: notices@bankruptcyreno.com
Attorney for Patrick Canet,
Judicial Liquidator and Foreign Representative
E-Filed 8/3/16
UNITED STATES BANKRUPTCY COURT
DISTRICT OF NEVADA
IN RE:
Gholam Reza Jazi Zandian
Debtor in a Foreign Proceeding.
CASE NO. BK-N-16-50644-BTB
CHAPTER 15
STATUS REPORT AND REPLY RE:
FRENCH PROCEEDING AGAINST ZANDIAN
Hearing Date: August 10, 2016
Hearing Time: 10:00 a.m.
On June 23, 2016, the Court conducted
a hearing on the Petition by Patrick Canet (“Liquidator Canet”) for recognition
of a foreign proceeding (“Petition”) pending in France, DE 1, against Gholam Reza Jazi Zandian (“Zandian”). The Petition
was opposed by Jed Margolin (“Margolin Objection”). DE 13. The Court directed Liquidator Canet to provide
additional information and set August 10, 2016 for a continued hearing on the
Petition. The Court requested information regarding a proceeding against
Zandian distinct from the proceeding against Computer World, and whether the
1997 judgment against Zandian is still enforceable. The request was
communicated to Jean Marie Hyest, French counsel for Liquidator Canet. Attached
hereto as Exhibit A are the English
and French versions of the Certificate Regarding Insolvency Proceedings dated
July 6, 2016 provided by the
From the record presently before this Court, the following timeline sets forth the current status of the foreign proceeding against Zandian. The Judgement of the Commercial
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Court of PONTOISE, dated 3 APRIL 1998, provides:
1. On June 12, 1992, Computer World, formerly called CEPAT, was “admitted to the benefit of reorganisation proceedings”. DE 1, page 8 of 12, second paragraph.
2.
On June 11, 1993, the Computer World reorganisation was converted to a
liquidation and Patrick Canet was appointed as the liquidator. DE 1, page 8 of 12, third
paragraph.
3. Patrick Canet summoned Zandian to a hearing scheduled for December 19, 1997 to appear before the Commercial Court of PONTOISE “for the purposes of a ruling against him based on the provisions of Article 181 of the Law of 25 JANUARY 1985;” . DE 1, page 8 of 12, first paragraph.
4. Based upon “a judgement rendered by the 6th Chamber of this Court on 13 JUNE 1997, Mr. Canet, Esq.’s claim was allowed. Mr. ZANDIAN was ordered to personally assume the debts of the company up to the amount of 20,000,000 francs.” DE 1, page 8 of 12, sixth paragraph.
5. “Mr. CANET, Esq., in his official capacity, consequently prays the Court to open judicial liquidation proceedings against Mr. Gholam JAZI ZANDIAN, with all the
consequences thereof . . . .”. DE 1, page 8 of 12, tenth paragraph.
6. Citing as the legal basis for its decision, Article 181 of the Law of 25 JANUARY 1985, to wit:
“The Court may open judicial reorganisation or liquidation proceedings with regardto managers whose liability for all or part of the liabilities of a legal entity has been recognised and who do not pay such debt.
****
Whereas the Court considers it appropriate to apply the provisions of the above-mentioned text of law and to open judicial liquidation proceedings against Mr.
Gholam ZANDIAN JAZI with all the legal
consequences thereof.”
DE 1, page 8 of 12, GROUNDS.
7. As a result, the Commercial Court of PONTOISE Ordered “Open judicial liquidation proceedings without any observation period with regard to: Mr. Gholam Reza
JAZI ZANDIAN . . . .”. Mr. Canet was appointed as liquidator. DE 1, page 9 of 12.
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8. On July 6, 2016, the Clerk of the Commercial Court of PONTOISE prepared a Certificate Regarding Insolvency Proceedings (“Certificate”). Exhibit A. The Certificate provides that the Clerk has searched the register for proceedings concerning GHOLAM ZANDIAN JAZI and noted three entries regarding ZANDIAN:
<
Notation of the
< Judgment of the Pontoise Commercial Court dated 16 December 2013 appointing SCP Canet-Morand as liquidator[1], replacing Mr. Canet as liquidator;
< Order of 2 February 2015 replacing the presiding Judge.
Finally, the Certificate indicates that “proceedings not currently terminated.”
DISCUSSION
The only question pending before this Court is whether there is a main liquidation proceeding pending against Zandian in the Commercial Court of PONTOISE. Liquidator Canet believes he has amply demonstrated that: (1) a liquidation proceeding, separate and apart from the liquidation proceeding against Computer World, was ordered against Zandian on April 3, 1998, and (2) the liquidation proceeding against Zandian is not yet terminated.
Section 1516, entitled Presumptions concerning recognition provides, in part:
(a) If the decision or certificate referred to in section 1515(b) indicates that theforeign proceeding is a foreign proceeding and that the person or body is a foreignrepresentative, the court is entitled to so presume.
(b) The court is entitled to presume that documents submitted in support of the petition for recognition are authentic, whether or not they have been legalized.
The certificate referred to in § 1515(b) indicates that the foreign proceeding is a foreign proceeding and appoints Patrick Canet as the liquidator. See, ¶ 7. This Court has been provided with certified copies of the Order directing the liquidation proceedings against
_______________________
[1]
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Zandian and the Certificate Regarding Insolvency Proceedings indicating that the proceedings against Zandian have not terminated. See, In re Betcorp Ltd., 400 B.R. 266, 294 (Bankr. D. Nev. 2009). Liquidator Canet is entitled to the presumptions which have not been rebutted by Margolin.
It may well be that the allegations made by Margolin against Zandian are true; however, the policy provisions which are set forth in § 1501(a) and (b) support entry of an order recognizing the foreign main proceeding pending in the Commercial Court of Pontoise in France. Section 1501(a) and (b) provide:
(a) The purpose of this chapter is to incorporate the Model Law on Cross-Border Insolvency so as to provide effective mechanisms for dealing with cases of cross-
border insolvency with the objectives of—
(1) cooperation between—
(A) courts of the United States, United States trustees, trustees, examiners, debtors, and debtors in possession; and
(B) the courts and other competent authorities of foreign countries involved in cross-border insolvency cases;
(2) greater legal certainty for trade and investment;
(3) fair and efficient administration of cross-border insolvencies that protects the interests of all creditors, and other interested entities, including the
debtor;
(4) protection and maximization of the value of the debtor’s assets; and
(5) facilitation of the rescue of financially troubled businesses, thereby protecting investment and preserving employment.
(b) This chapter applies where—
(1) assistance is sought in the
(2) assistance is sought in a foreign country in connection with a case under this title;
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(3) a foreign proceeding and a case under this title with respect to the same debtor are pending concurrently; or
(4) creditors or other interested persons in a foreign country have an interest in requesting the commencement of, or participating in, a case or proceeding
under this title.
There is a foreign main proceeding pending against Zandian and Liquidator Canet seeks assistance in this Court with respect to that proceeding by obtaining an order
recognizing the foreign proceeding. Such an order will be in furtherance of the policy considerations of § 1501(a).
CONCLUSION
Liquidator Canet requests that the Court (1) recognize the presumption set forth in § 1516, (2) overrule the Margolin Objection, and enter an order recognizing the foreign main proceeding as requested in DE 1 and for such other and further relief as is appropriate.
DATED: August 3, 2016.
HARTMAN & HARTMAN
/S/ Jeffrey L. Hartman
Jeffrey L. Hartman, Esq.
Attorney for Patrick Canet,
Foreign Representative
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CERTIFICATE OF SERVICE
I certify that I am an employee of Hartman & Hartman, and that on August 3, 2016, I caused to be served the foregoing document by the following means to the persons as listed below:
> a. Electronically, via the Court’s ECF System, to
LOUIS M. BUBALA, III on behalf of Creditor KAEMPFER CROWELL
lbubala@kcnvlaw.com, bubalalawyer@gmail.com;mmarsh@kcnvlaw.com;cbyrne@kcnvlaw.com
JEFFREY L HARTMAN on behalf of Foreign Representative PATRICKCANET
notices@bankruptcyreno.com, sji@bankruptcyreno.com
ARTHUR A. ZORIO on behalf of Creditor JED MARGOLIN
azorio@bhfs.com, jtillison@bhfs.com
> b. U. S. Mail, postage prepaid, to
STEVE E. ABELMAN
on behalf of Creditor JED MARGOLIN
BROWNSTEIN HYATT FARBER SCHRECK
I declare under penalty of perjury that the foregoing is true and correct.
Dated: August 3, 2016.
/S/ Stephanie Ittner
Stephanie Ittner
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