Uruguay faces global enforcement battle over $30M ICSID award as LARAH pursues seizures in Luxembourg and beyond Executive summary: In November 2024, Latin America Regional Aviation Holding (LARAH) began enforcement proceedings in Luxembourg to recover a USD 30 million ICSID Award issued against Uruguay, stemming from the 2012 liquidation of Pluna, Uruguay’s national airline. The ICSID Tribunal found Uruguay had violated its fair and equitable treatment obligations under the Panama-Uruguay BIT, forcing LARAH to divest its shares without compensation. Uruguay, citing a 2012 MOU indemnifying it against shareholder claims, attempted a settlement with SARAH, another shareholder, but negotiations failed due to LARAH's demand to terminate criminal proceedings against its directors. While denying awareness of enforcement actions, Uruguay reaffirmed its commitment to comply with the Award, as LARAH pursues additional recovery efforts globally. On 15 November 2024, the Panamanian company Latin America Regional Aviation Holding (LARAH) initiated enforcement proceedings in Luxembourg for an Award issued earlier this year by an ICSID arbitral...
