Stans Energy Corp V.HRE.H

RE:RE:RE:No Stone Unturned

[Kaliahk]

ggoose,
The appeal with Sistem and others was brought by the Kyrgyz.  If they are successful, then there is nothing in Canada to go after and no reason to proceed with ettempted enforcement of the now vacated arbitration award (not that this is a particularly likely to succeed - only that the risk (expense) is small compared to the benefit potential of $118 million plus interest).  Also, if the Kyrgyz are successful, they would be able to proceed with the JV with Centerra and move their asset associated with Centerra back into Kyrgyz jurisdiction (where it would very likely not be subject to seizure to enforce and award due Stans).  This also makes the statement that Stans will pursue collection in whatever jurisdiction is required as prophetical.  The Kyrgyz could probably avoid any significant seizures of assets for a long time.   But there are scenarios where a foreign government cold buy the debt as a discount, etc.
If the Krygyz are unsuccssful, they will have to pay the Sistemand other affirmed  judgments, but will not be required to set aside shares for Stans as that Mareva injunction has already been thrown out.  It could become a race to get the assets out of Canada before Stans could either enforce the prior award or obtain a new one - i.e. through the JV agreement with Centerra.  I can't see Stan's getting its attachment of the Centerra shares reimposed pending eithther the UNICITRAL arbitration or enforcement of the prior award.
I agree that Stan's seems to be pursuing a rational approach - in comparison to their prior attempt to be tricky with the Russian arbitration process and then doubling down upon it..