Legal actions being taken to deal with potential buyers of Georges Marciano's houses in California

Jun 22, 2012, 07:47 ET from ENIGMA COMMUNICATIONS INC.

MONTREAL, June 22, 2012 /PRNewswire/ - The purchase of three Los Angeles properties that belong to Georges Marciano, worth a total of over $40 million, will be challenged following appeals submitted by the founder of Guess Jeans.

Three judges at the California Court of Appeal reversed the judgment of the trial judge, Elizabeth White, ruling the damages obtained by Gary Iskowitz, Mr. Marciano's former accountant, to be excessive. The situation is likely to be the same for all the other trial judgments rendered in the cases of Fahs et al. These appeals will be heard in the coming months. If the appeals are successful, the reversal of the judgments will, for all practical purposes, nullify the reason for the forced sale of Mr. Marciano's properties.

Mr. Marciano also intends to appeal any court-approved sales of the properties and will seek an order to prevent the sales from being consummated.

It will be recalled that on December 8, 2011, the Honourable Mark Schrager of the Superior Court of Quebec rejected the warrant and the authorization to seize assets belonging to Georges Marciano and to third parties. In his decision, the Honourable Justice Schrager pointed out that the decisions made in California were not final, as they were still before the Court of Appeal, and that no bankruptcy had been filed under the Bankruptcy and Insolvency Act. As such, he ordered the American trustee David Gottlieb to return to Mr. Marciano and to the third parties involved all assets seized before judgment (artworks, luxury vehicles, buildings, jewellery, etc.).