Hidroelectrica Rio Juramento SA

distressed

The company had a total installed capacity of 112-MW in November 1995 distributed in two hydro power plants: 102-MW Cabra Corral and 10-MW El Tunal. The government sold a 98% equity stake for $41.1 million to Inversora AES Diamante SA, a subsidiary of AES Corporation (USA), in November 1995. The remaining 2% equity stake was sold to Hidroelectrica Rio Juramento's employees for $0.84 million, the same share price that the winning consortium paid. In 2002, AES Corporation filed legal proceedings with an international arbitration tribunal (International Centre for Settlement of Investment Disputes - ICSID) against the Argentinean government. The proceeding seeks compensation for losses incurred by the company at the time of the devaluation of the Argentinean currency. For updates on the international arbitration proceedings, check http://www.worldbank.org/icsid (case # ARB/02/17).