The visit of US president George W. Bush to Romania has shed light on the Resita case - the battle will be waged in court. Noble Ventures has chosen Washington and is asking for $200 million in damages from the Romanian State. In response, the Privatisation Authority (APAPS) is preparing to sue Noble Ventures in Romania and is asking for 100 million dollars in damages.
According to unofficial information, Romanian President Ion Iliescu and George W. Bush were also to discuss the case of the Resita Steel Mill (CSR). Eventually, the Privatisation minister realised he needn't have worried, since the experts decided that these problems should be solved in a court of law, without the intervention of government institutions.
"We will file a request to cancel the privatisation contract this week and we will ask Noble Ventures for damages worth 100 million dollars," Privatisation minister Ovidiu Musetescu told Ziarul Financiar.
At the same time, Noble Ventures last October filed a lawsuit with the World Bank's International Centre for Settlement of Investment Disputes, accusing the Romanian State of having nationalised the plant.
Given the unexpected twist and the possibility of losing 200 million dollars, the Romanian State, represented by APAPS, has retained at the last minute strong law firms to handle this case. Musat&Asociatii were hired in Romania, while in the United States APAPS chose White&Case, one of the largest law firms in America, with the most extensive experience in this type of lawsuits.
On the other hand, Noble Ventures retained Wiley, Rain&Fielding. According to some sources, the company may be paid with a share of the money the American company aims to get from the Romanian State.
The Washington court has gained international repute in expropriation suits and the ruling is definitive.
The Resita case will be tried by three arbitrators. The two sides have already chosen one arbitrator each and the chairman remains to be appointed. This is Romania's first time in this court of law.
The Washington trial was triggered by the judicial reorganisation of Resita Steel Mill, which began last July, at the request of Resita City Hall and the National Health Insurance Office.
Noble Ventures has assimilated the reorganisation procedures to nationalisation and argues its case quoting stipulations of the bilateral treaty between the US and Romania, on mutual protection of investments.
"A parallel has been wrongly drawn between Law 64 (bankruptcy) and the treaty. Law 64 applies to all companies, whether state-owned or private, and impacts on patrimony. Noble Ventures holds a stake and their shareholder rights have never been contested, no illegal actions have been taken," the APAPS experts say.
Pentru alte știri, analize, articole și informații din business în timp real urmărește Ziarul Financiar pe WhatsApp Channels
