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|Owens-Illinois, Inc.: O-I Provides Update on Arbitration Against Venezuela|
FOR IMMEDIATE RELEASE
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O-I Provides Update on Arbitration Against Venezuela
PERRYSBURG, Ohio (April 6, 2016) - Owens-Illinois, Inc. (NYSE:OI) announced today that the annulment committee formed by the World Bank's International Centre for Settlement of Investment Disputes ("ICSID") ruled that a subsidiary of the Company is free to pursue the enforcement of a prior arbitration award against the Bolivarian Republic of Venezuela ("Venezuela"). That award amounts to more than $485 million after including interest from the date of the expropriation by Venezuela (October 26, 2010) and costs and remains subject to the committee's consideration of Venezuela's application for annulment. The Company's majority interest in two plants expropriated by Venezuela and the progress of the ICSID annulment proceeding have been previously reported by the Company.
The Company intends to take appropriate steps to vigorously enforce and collect the award, which is enforceable in approximately 150 member states that are party to the ICSID Convention. However, even with the lifting of the stay of enforcement, the Company recognizes that the collection of the award may present significant practical challenges. The Company cannot reasonably predict the efforts that will be necessary to successfully enforce collection of the award or the timing of any such collection efforts. Because the award has yet to be satisfied and the annulment proceeding is pending, the Company is unable at this stage to predict the amount or timing of compensation it will ultimately receive under the award. Therefore, the Company has not recognized this award in its financial statements.