Kuwait ordered to pay Dow close to $2.5 billion in K-Dow arbitration case
14:09 PM | March 4, 2013 | Natasha Alperowicz
The International Court of Arbitration of the International Chamber of Commerce (ICC) today released the final award amount, representing interest and costs, in the arbitration case between Dow Chemical and Petrochemical Industries Company (PIC) of Kuwait related to the K-Dow transaction.
The final interest and costs awarded to Dow totals $318 million, as of today, and is in addition to the partial award of $2.16 billion announced last May—resulting in full damages awarded to Dow equal to $2.48 billion. This is the last step in the disciplined arbitration process, bringing the process to a close. Both awards—partial and final—are binding and nonappealable, the ICC says.
“Payment of these damages of nearly $2.5 billion will allow Dow to accelerate its priority uses for cash by further strengthening our balance sheet,” said Andrew Liveris, Dow’s chairman and CEO. “Dow and Kuwait share a long history and strong partnership, and this award ruling brings suitable closure to the arbitration process. The Dow team fully expects, and we are resolved to ensure, that PIC honors its contractual commitments in a timely manner.”
The total award amount is subject to continuing interest until Dow receives payment. Counsel for Dow is Shearman & Sterling.