THE PROBLEM

RESPONDENT’s EXHIBIT R 6
Turbulent times: Equatorian Producer of jet
engine blades in bad weather?
Carioca
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5 September 2016
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On a press conference of 2
September, the Head of the
Chamber of Commerce in
Oceanside, Equatoriana
confirmed that the Chamber
had received on 1 September
2016 a notice from CAM-
CCBC, one of the leading
arbitration institutions in
South America that the
Equatoriana based fan
producer Wright Ltd had not
complied with an arbitral
award ordering it to pay US
$ 2,500,000 to one of its
suppliers.
The message refuels concerns
about the financial situation of
Wright Ltd. In 2010 Wright
had to close down its local
subsidiary in Xanadu due to an
alleged non-compliance with
local regulations. The trustee
appointed by the local
authorities had subsequently
sold the production facilities
to a group of local investors.
As a consequence, Wright had
brought an investment claim
against the government of
Xanadu alleging that
governmental officials had
conspired with local
competitors to take
possession of the very
profitable subsidiary and its
production facilities. The
arbitration had been funded
by Finance You, a well known
third party funder of
investment claims. As was
only disclosed in the
beginning of 2016 the
arbitration had resulted in
an award in 2013 in favor
of Wright ordering the
government of Xanadu to
pay 12 million in damages
for the de facto
expropriation of Wright
Ltd. The amount was,
however, only a fraction of
the US$ 203 million
allegedly claimed by
Wright. At the time the
spokesman of Wright did
not want to comment on
the outcome of that
arbitration which had
resulted in a serious drop
in the values of Wright’s
shares.
Carioca Business News has
been informed by persons
close to Wright that there
was another arbitration
initiated against a foreign
customer for which Wright
had approached several
third party funders.
Apparently, none of them
had taken up the
arbitration. Questions by
Carioca Business News of
why that was the case to
the funders and Wright
remained unanswered.
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