I recently authored the case summary of Grenada Private Power Limited and WRB Enterprises, INC v. Grenada (ICSID Case No. ARB/17/13) in TDM IACL. The Award examines an issue of occurrence of ‘Repurchase events’ and is definitely, an interesting read. A brief summary is here below:
In 1994, Government of Grenada privatised GRENLEC and sold a controlling interest in GRENLEC Grenada Electricity Services Company Limited to the claimants. The privatization package included a Share Purchase Agreement signed between the Respondent and the Claimants which provided that upon the happening of a “Repurchase Events”, the Claimants would have the right to “put” their shares to the Government of GRENADA(GOG), and the GOG would be obliged to repurchase them at a price calculated in accordance with the Second Schedule of the 1994 ESA. Twenty-two years later, the incoming NNP Government decided to restructure the electricity sector through sweeping changes to its regulation, production and distribution. The result, the Claimants say, was to trigger an obligation on the part of GOG to repurchase the Claimants’ shares in GRENLEC. The Claimants put their GRENLEC Shares to the GOG for repurchase, claiming compensation of EC $182,100,000, pursuant to the statutory valuation formula in the Second Schedule. Claimant brought an action against rejection of any obligation to repurchase the shares and refusal to pay the claim.
Read the Case Summary in detail here.