TEL AVIV, Israel, May 3, 2012 (GLOBE NEWSWIRE) -- Ampal-American Israel Corporation (Nasdaq: AMPL) announced today that it has filed a request for arbitration against the Arab Republic of Egypt, in connection with Ampal's investment in East Mediterranean Gas, S.A.E. ("EMG") - in which it holds a 12.5% interest - for the breach of the bilateral investment treaty ("BIT") between Egypt and the United States. Other EMG investors, including Ampal affiliates and co-investors in EMG, also requested arbitration yesterday under Egypt's BITs with Poland and Germany.
The investors' disputes with Egypt arise out of a series of acts and failures by the Government of Egypt that have seriously undermined the value of the investors' investments in EMG. The arbitrations initiated by the investors follow lengthy attempts to resolve the dispute through negotiation in accordance with the applicable treaties' consultation clauses in 2011. The treaty arbitrations are in addition to the previously reported arbitration launched by EMG in October 2011 against Egyptian General Petroleum Corporation and state-owned Egyptian Natural Gas Company under the parties' gas supply and purchase agreement.
In the treaty arbitrations, the EMG investors claim that Egypt breached its international obligations under the applicable investment treaties by failing to provide fair and equitable treatment and full protection and security to their investments, impairing their investments through unreasonable and discriminatory measures, failing to observe the Egyptian State's obligations toward their investments, and expropriating their investments.
Through the arbitrations, the investors seek, among other relief, significant monetary compensation for damages caused by Egypt's treaty violations. EMG has been valued in the billions of dollars.
In accordance with the bilateral investment treaty between Egypt and the United States, Ampal's request for arbitration was submitted to the World Bank's International Centre for Settlement of Investment Disputes ("ICSID"). Several other US entities and a German citizen who invested in EMG have also filed requests for arbitration pursuant to the ICSID convention.
Mr. Yosef A. Maiman - a Polish national - and three Ampal-affiliated entities that he controls submitted a notice of arbitration under Egypt's BIT with Poland pursuant to the Arbitration Rules of the United Nations Commission on International Trade Law ("UNCITRAL").
All of the claimants retained the legal services of Freshfields Bruckhaus Deringer LLP to represent them in the various arbitrations, claims, and other legal proceedings involving EMG's dispute with EGPC/EGAS and the claims against the Government of Egypt. M. Firon & Co. also represents Ampal and its affiliates in these proceedings.
Freshfields is consistently ranked as the world leader in international commercial and treaty arbitration.
M. Firon & Co., one of Israel's largest law firms, is ranked as an Israeli market leader in Projects & Energy.
About Ampal:
Ampal and its subsidiaries acquire interests primarily in businesses located in the State of Israel or that are Israel-related. Ampal is seeking opportunistic situations in a variety of industries, with a focus on energy, chemicals and related sectors. Ampal's goal is to develop or acquire majority interests in businesses that are profitable and generate significant free cash flow that Ampal can control. For more information about Ampal please visit our web site at www.ampal.com.
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