Cleary Gottlieb Successfully Defends Hellenic Republic in Challenge to Landmark Arbitration Award

Cleary has successfully represented the Hellenic Republic in dismissing proceedings initiated by Slovak bank Poštová banka, seeking partial annulment of a landmark ICSID award in 2015 relating to the Hellenic Republic’s 2012 sovereign debt restructuring.

In a decision published September 29, 2016, the ICSID tribunal dismissed Poštová banka’s application to partially annul an ICSID award issued in April 2015, which refused jurisdiction over claims brought by Poštová banka and its Cypriot shareholder, Istrokapital, under Greece’s bilateral investment treaties with Slovakia and Cyprus. The claimants sought to recover compensation based on a face value of over €500 million of the bank’s interests in Greek government bonds that were subject to the Hellenic Republic’s 2012 sovereign debt exchange.