O-I Provides Venezuela Arbitration Update
O-I recently announced that the ICSID ruled in its favor regarding a prior arbitration award.
Owens-Illinois, Inc. (O-I) recently announced that the annulment committee formed by the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) ruled that a subsidiary of the company is free to pursue the enforcement of a prior arbitration award against the Bolivarian Republic of Venezuela. The award reportedly amounts to more than $485 million, including costs and interest from the date of the expropriation by Venezuela in October of 2010. The settlement remains subject to the committee’s consideration of Venezuela’s application for annulment.
Even with the lifting of the stay of enforcement, O-I recognizes that the collection of the award may present significant practical challenges. The company cannot reasonably predict the efforts that will be necessary to successfully enforce collection of the award or the timing of any such collection efforts. Because the award has yet to be satisfied and the annulment proceeding is pending, the company is unable to predict the amount or timing of compensation it will ultimately receive under the award, and therefore has not recognized it in its financial statements.
For more information, visit www.o-i.com.