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VARDAN AYVAZYAN WILL PAY $37,537,978.02
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy27389.html
Published: 17:48:36 - 14/09/2012
On Thursday September 6, 2012, the United States Marshal Service for
the Southern District of New York filed for service a Writ of Execution
to be enforced against Mr. Vardan Ayvazyan in favor of Global Gold
Mining, LLC, a wholly owned subsidiary of the Company ('GGM'). The
Writ of Execution was issued by the United States District Court for
the Southern District of New York following the order and judgment of
Judge J. Paul Oetken and final entry of that judgment (No. 12,1260),
without appeal. The terms of the Writ of Execution and the Thirty
Seven Million Five Hundred Thirty Seven Thousand Nine Hundred Seventy
Eight dollars and Two cents ($37,537,978.02) amount of the judgment in
favor of GGM are more particularly described in the attachment hereto.
In 2006, a subsidiary of the Company which was the license holder for
the Hankavan property was the subject of corrupt and improper demands
and threats from the now former Minister of the Ministry of Environment
and Natural Resources of Armenia, Vardan Ayvazyan. The Company reported
this situation to the appropriate authorities in Armenia and in the
United States; eventually, the Company lost control of the Hankavan
property as a result of Ayvazyan. The Company engaged international
and local counsel to pursue prosecution of the illegal and corrupt
practices directed against the subsidiary. On November 7, 2006,
the Company initiated the thirty-day good faith negotiating period
(which is a prerequisite to filing for international arbitration under
the applicable 2003 Share Purchase Agreement) with the three named
sellers/shareholders and one previously undisclosed shareholder and
the principal directing the other shareholders, Ayvazyan. The Company
filed for arbitration under the rules of the International Chamber
of Commerce, headquartered in Paris, France ('ICC') on December 29,
2006. On June 25, 2008, the Federal District Court for the Southern
District of New York ruled that Ayvazyan was required to appear
as a respondent in the ICC arbitration. On September 5, 2008, the
ICC International Court of Arbitration ruled that Ayvazyan shall
be a party in accordance with the decision rendered on June 25,
2008 by the Federal District Court for the Southern District of New
York. Subsequently, in December 2011 the ICC Tribunal decided to
proceed only with the three named shareholders; in March 2012, GGM
filed an action in Federal District Court pursuant to that Court's
prior decisions for damages against Ayvazyan and/or to conform the
ICC Tribunal to the precedents. Based on the evidence of the damages
suffered as a result of Ayvazyan's actions, the final $37,537,978.02
federal court judgment in favor of GGM is comprised of $27,152,244.50
in compensatory damages plus $10,385,734.52 of interest at 9% from
2008. The Company has notified the ICC that the pending arbitration
against the other three shareholders should be terminated as moot,
considering the final judgment against Ayvazyan.
From: A. Papazian
Story from Lragir.am News:
http://www.lragir.am/engsrc/economy27389.html
Published: 17:48:36 - 14/09/2012
On Thursday September 6, 2012, the United States Marshal Service for
the Southern District of New York filed for service a Writ of Execution
to be enforced against Mr. Vardan Ayvazyan in favor of Global Gold
Mining, LLC, a wholly owned subsidiary of the Company ('GGM'). The
Writ of Execution was issued by the United States District Court for
the Southern District of New York following the order and judgment of
Judge J. Paul Oetken and final entry of that judgment (No. 12,1260),
without appeal. The terms of the Writ of Execution and the Thirty
Seven Million Five Hundred Thirty Seven Thousand Nine Hundred Seventy
Eight dollars and Two cents ($37,537,978.02) amount of the judgment in
favor of GGM are more particularly described in the attachment hereto.
In 2006, a subsidiary of the Company which was the license holder for
the Hankavan property was the subject of corrupt and improper demands
and threats from the now former Minister of the Ministry of Environment
and Natural Resources of Armenia, Vardan Ayvazyan. The Company reported
this situation to the appropriate authorities in Armenia and in the
United States; eventually, the Company lost control of the Hankavan
property as a result of Ayvazyan. The Company engaged international
and local counsel to pursue prosecution of the illegal and corrupt
practices directed against the subsidiary. On November 7, 2006,
the Company initiated the thirty-day good faith negotiating period
(which is a prerequisite to filing for international arbitration under
the applicable 2003 Share Purchase Agreement) with the three named
sellers/shareholders and one previously undisclosed shareholder and
the principal directing the other shareholders, Ayvazyan. The Company
filed for arbitration under the rules of the International Chamber
of Commerce, headquartered in Paris, France ('ICC') on December 29,
2006. On June 25, 2008, the Federal District Court for the Southern
District of New York ruled that Ayvazyan was required to appear
as a respondent in the ICC arbitration. On September 5, 2008, the
ICC International Court of Arbitration ruled that Ayvazyan shall
be a party in accordance with the decision rendered on June 25,
2008 by the Federal District Court for the Southern District of New
York. Subsequently, in December 2011 the ICC Tribunal decided to
proceed only with the three named shareholders; in March 2012, GGM
filed an action in Federal District Court pursuant to that Court's
prior decisions for damages against Ayvazyan and/or to conform the
ICC Tribunal to the precedents. Based on the evidence of the damages
suffered as a result of Ayvazyan's actions, the final $37,537,978.02
federal court judgment in favor of GGM is comprised of $27,152,244.50
in compensatory damages plus $10,385,734.52 of interest at 9% from
2008. The Company has notified the ICC that the pending arbitration
against the other three shareholders should be terminated as moot,
considering the final judgment against Ayvazyan.
From: A. Papazian