Argentina Wins Appeal in BG Group Metrogas Bankruptcy Case
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Argentina won a U.S. appeals court decision throwing out a $185 million dollar award to BG Group Plc, which claimed the country’s freeze on natural gas prices caused the bankruptcy of a local gas distributor it controlled.
The U.S. Court of Appeals in Washington, overturning a lower court, ruled today that the arbitration panel that made the award exceeded its authority in even taking the dispute. BG Group should have sued first in Argentine courts and then waited 18 months for a result as required by a commercial treaty governing the case, the court said.