O-I has sold the rights to a USD 500-million arbitration award against the Venezuelan government to an unnamed Irish investment fund that was granted through the World Bank’s International Centre for Settlement of Investment Disputes.
O-I has sold the rights to an arbitration award against the Venezuelan government
Owens-Illinois (O-I) has sold the rights to a USD 500-million arbitration award against the Venezuelan government.
The world’s largest container glass manufacturing company received USD 115 million from an unnamed Irish investment fund in return for the rights to the arbitration award that was granted through the World Bank’s International Centre for Settlement of Investment Disputes.
In its Q2 financial statement, the company said: “A European subsidiary of the company sold to a third party its right, title and interest in amounts due under its arbitration award against Venezuela.
As consideration, the subsidiary received a cash payment of USD 115 million, and retains a modest potential upside depending upon recovery of the award.”
The two-year-old arbitration ruling relates to the 2010 government takeover of two O-I glass factories in Venezuela. O-I had paid more than USD 600 million to buy the country’s third-largest glassmaker in a bid to expand its reach into the emerging market region. Shortly after, however, the Venezuelan government took control of the factories.
After hearing the case, the International Centre for Settlement of Investment Disputes found the Venezuelan government owed an O-I subsidiary USD 456 million. With interest, the total has risen to about USD 500 million.
If the buyer of the arbitration settlement can collect the money, O-I could get more than the USD 115 million. Venezuela has petitioned to have the ruling annulled, and a hearing on that i...
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