According to origo.hu, the first phase of the international arbitration proceedings launched due to the dispute between the Hungarian state and the Portuguese DanCake has been finished: International Centre for Settlement of Investment Disputes ruled that Hungary, through the judgement of the Budapest Court, violated the principles of the protection of foreign investments, the company said.
After the decision, the process reached the final stage which aims to financially compensate the Portuguese company, DanCake said. The company claims a compensation total of EUR 110 million (HUF billion).
The Washington-based International Centre for Settlement of Investment Disputes belonging to the World Bank arbitrates disputes related to international investments.
According to the company, there is no place an appeal against the judgement. The company said this is the first time when Hungary has lost a lawsuit in the international forum, so the judgement is an important milestone in the process that aims to ensure the adequate protection of the foreign investments in the country.
Once decided, the process reached its final stage which is to determine what kind of financial compensation will be granted for the Portuguese company. This stage takes place between October 2015 and October 2016, the final verdict is expected in March 2017, DanCake wrote.
In 1996, DanCake invested EUR 22 million in Hungary in order to promote the expansion of its Danesita brand, thereby creating 70 jobs. In 2006, due to supplier insolvency, the liquidation of the company was requested because of a debt worth less than EUR 10 thousand. Despite the fact that DanCake settled the debts towards the supplier and agreed with the creditors to rescue the firm, the Budapest Court liquidated the company.
The Portuguese DanCake company was established in 1979. It produces biscuits, rusks and cakes and exports to more than 80 countries worldwide. DanCake is the world’s second biggest producer of butter biscuits.
based on the article of origo.hu
translated by BA
Photo: Dan Cake Facebook page
Source: http://www.origo.hu
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