A court in Cairo has ruled that the Egyptian gas companies must pay East Mediterranean Gas (EMG) $1.033 billion in compensation.
The court also ruled that Egypt, through the gas companies, violated its trade treaty with Poland, thereby having a negative impact on the investment of EMG co-owner Josef Maiman, who filed the lawsuit as a Polish citizen.
The damages awarded by the court come on top of $324 million awarded by the International Chamber of Commerce (ICC) in an arbitration procedure, which has not yet been paid.
The liquidator for Ampal-American Israel Corporation said, "We now expect other arbitration institutions (ICSID and UNCITRAL) that previously decided in favor of EMG to issue rulings on compensation."
If the amounts awarded are paid, it will be an unusual success for the collection proceedings filed by Ampal-American's bondholders against the company.
Ampal-American and EMG are being represented in the arbitration by the Freshfields Bruckhaus Deringer LLP lawfirm, and Ampal-American's bondholders are being represented by Advocates Dan Offer, Ofer Shapira, and Arye Danziger.
Published by Globes [online], Israel Business News - www.globes-online.com - on February 18, 2018
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