O-I prevails in international arbitration against Venezuela
March 12 2015 - 8:48AM
FOR IMMEDIATE RELEASE
For more information,
contact:
Lisa Babington
Director, Corporate Communications
567-336-1445
lisa.babington@o-i.com
lisa.babington@o-i.com
O-I prevails in
international arbitration against Venezuela
PERRYSBURG, Ohio (March 12, 2015) Owens-Illinois,
Inc. (NYSE: OI) today reported that its Dutch subsidiary, OI
European Group B.V. (OIEG), has prevailed in an international
arbitration against Venezuela. OIEG has been awarded more than $455
million for Venezuela's unlawful expropriation of OIEG's majority
interest in two plants in Venezuela.
The award was issued March 10 by a tribunal
constituted under the auspices of the International Centre for
Settlement of Investment Disputes (ICSID).
International law requires Venezuela to pay OIEG
the amounts due. Venezuela may seek to have the award annulled or
otherwise delay or not comply with the award. If Venezuela fails to
meet its obligations, OIEG will seek to enforce the award against
Venezuela's assets around the world or find alternative measures of
redress. OIEG is unable at this stage to predict the amount, or
timing of receipt, of compensation it will ultimately receive under
the award.
The three-member tribunal found that Venezuela
violated its obligations under the 1991 bilateral investment treaty
between the Netherlands and Venezuela and awarded OIEG more than
$372 million in compensation plus interest (calculated at a rate of
1 year US dollar LIBOR plus 4 percent). Under the award, interest
compounds annually from the date of expropriation until the date of
effective payment. The expropriation occurred on October 26, 2010,
and the interest, calculated to date, exceeds $84 million. The
tribunal also awarded costs and legal fees to OIEG.
"As the tribunal found, Venezuela expropriated
very valuable assets, which were the result of more than half a
century of hard work and commitment by O-I employees and for which
the country now has to compensate O-I," said Al Stroucken, O-I
chairman and CEO. "We hope that the plants continue to benefit our
former employees and the Venezuelan people."
A separate arbitration is pending with ICSID to
obtain compensation primarily for third-party minority
shareholders' lost interests in the two expropriated plants.
###
About O-I
Owens-Illinois, Inc. (NYSE:
OI) is the world's largest glass container manufacturer and
preferred partner for many of the world's leading food and beverage
brands. The Company had revenues of $6.8 billion in 2014 and
employs approximately 21,100 people at 75 plants in 21 countries.
With global headquarters in Perrysburg, Ohio, USA, O-I delivers
safe, sustainable, pure, iconic, brand-building glass packaging to
a growing global marketplace. For more information, visit
o-i.com.
O-I's Glass Is Life(TM) movement promotes the
widespread benefits of glass packaging in key markets around the
globe. Learn more about the reasons to choose glass and join the
movement at glassislife.com.
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Venezuela Arbitration Result Press Release
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Owens-Illinois, Inc. via Globenewswire
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