Insights | Kobre & Kim — Disputes and Investigations

Kobre & Kim currently represents ConocoPhillips in its efforts to enforce over US $10 billion in judgments and arbitration awards against the Republic of Venezuela and related state-owned entities.
A recent victory in the U.S. Third Circuit Court of Appeals has cleared a path for ConocoPhillips to enforce a judgment recognizing an ICSID award against Venezuela's state-owned oil company's shares in its Delaware subsidiary.
This victory shows how the "alter ego" theory can be used as an effective leverage point against a recalcitrant sovereign debtor, increasing claimant chances of achieving favorable returns.

Creditors and investors in sovereign debt are riding a wave of new opportunities driving returns with global public debt projected to exceed US$100 trillion by the end of 2024, making it possible to reap higher returns on claims against sovereigns previously thought too difficult to enforce.
A well-thought-out strategy can increase returns and accelerate enforcement timelines.

On October 22, England’s Court of Appeal dismissed the Kingdom of Spain’s challenge to enforce a US $109 million arbitral award in favor of Kobre & Kim’s client.
Despite Spain’s arguments asserting state immunity, Lord Justice Phillips interpreted the 1965 ICSID Convention.

More investors are taking their disputes against sovereign states and entities to arbitration and judicial forums.
However, demanding payment of a defaulted debt, judgment or award does not always lead to the sovereign paying up.
We explore aggressive non-traditional strategies investors should deploy to ensure a sovereign debtor agrees to a settlement.

For international investors and companies, winning an arbitration award against a sovereign state marks just the beginning of a lengthy, globe-spanning enforcement campaign.
To make a greater impact on the enforcement process, award holders should not be afraid to use more creative approaches.
A recent Kobre & Kim victory demonstrates how this approach can put legitimate pressure on sovereign debtors and bring them to the negotiating table.

Sovereign defaults are increasing after recent years of post-pandemic spending, geopolitical risk and climate change.
This has created opportunities for distressed investors experienced in enforcing against sovereigns.
Investors can improve the value of their claims by deploying strategies targeting unconventional vulnerabilities around the world.

More investors are taking their disputes against sovereign states and entities to arbitration and judicial forums.
However, demanding payment of a defaulted debt, judgment or award does not always lead to the sovereign paying up.
We explore aggressive non-traditional strategies investors should deploy to ensure a sovereign debtor agrees to a settlement.

Winning an arbitral award often marks the beginning of a long and costly global enforcement campaign for international investors, especially against a sovereign state.
To speed up a settlement, investors should take a bold stand against sovereigns, leveraging international treaty protections.
A recent landmark win against the Kingdom of Spain shows one way for investors.

A coming global economic downturn will put sovereign debt under pressure.
It may appear near impossible for creditors and investors to enforce this debt against sovereigns, but those who succeed can see extraordinary returns.
We explain how deploying creative cross-border strategies can overcome the toughest sovereign debtors and unlock the key to success.

The current economic downturn has triggered record-breaking amounts of debt owed by governments to overseas investors.
The crisis, however, has the potential to create large returns for creditors and investors willing to aggressively pursue their claims over a sovereign government.
A proven yet unorthodox cross-border litigation strategy that catches sovereigns by surprise can achieve the monetization of judgments previously thought too tough to enforce.

Investors and creditors can gain potentially large returns if they successfully enforce a large judgment against a sovereign debtor.
However, with such high-stakes, sovereign governments have begun fighting back using state powers against creditors, turning civil proceedings into a quasi-criminal cross-border dispute.
A creditor must employ anticipatory and nonconventional counteroffensive measures in order to protect themselves and maximize their odds of success.

There are many reasons why sovereign debtors can be challenging targets.
The right combination of high-pressure tactics, coupled with aggressive, creative, multijurisdictional strategies, can force sovereign debtors to take a seat at the bargaining table.
Here are specific examples of effective techniques from recent successful matters where legitimate claims were recovered against sovereign entities.