Harbour’s funding allows a corporate to take the necessary steps to protect its shareholders’ interests at no extra cost to the company.
The Energy Charter Treaty (“ECT”) is designed to provide a stable platform for energy sector investments. The country, signatory to the Treaty, delayed and ultimately refused to grant a production concession to an oil field, causing an alleged breach of the ECT, resulting in financial loss to the company. Based on legal and expert opinions, the company has been advised that it has strong prospects of recovering very significant monetary damages as a result of the alleged breaches.
In a statement the company’s CEO highlighted that the non-recourse funding for the arbitration allows them to commence an arbitration to protect their investment, at no extra cost to the company while in the event of success it retains a very material proportion of any award.
Arbitration proceedings have started and the case is ongoing.