(Document, does not apply to summary and/or TDM IACL Case Report below).
Case Report (free download)
Case Report by Dhanya T Mallar, Editor Ignacio Torterola
In 1994, Government of Grenada privatised Grenada Electricity Services Company Limited (GRENLEC) and sold a controlling interest in GRENLEC to the claimants, Grenada Private Power Ltd. (GPP) and WRB Enterprises Inc. (WRB). The privatization package included a Share Purchase Agreement (SPA) signed between the Respondent and the Claimants which provided that upon the happening of one of the "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 (Second Schedule). Twenty-two years later, the incoming New National Party (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 Respondent claimed that the provisions of the ESA were void and of no legal effect as they fettered Government action in contravention of fundamental principles enshrined in the Constitution of Grenada. The Tribunal held that SPA was constitutionally compliant. Consequently the Tribunal ordered Grenada to pay Grenada Private a compensation at USD 58,427.962 plus pre- and post-Award interest from 3 May 2017 until payment of the Award. Finally, Grenada's counterclaim was dismissed.
Occurrence of "Repurchase Event" - Breach of Share Purchase Agreement by Government of Grenada - Quantum of Compensation
Case report provided by International Arbitration Case Law (IACL)
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