The United States District Court for the South District of Texas, in a ruling dated March 10, upheld an April 2009 decision that Petrobras owed that amount to Astra Oil for Astra’s 50% stake in the Pasadena Refining System (PRSI) and PRSI’s related trading company.
In October 2008, an arbitration panel issued a preliminary decision establishing the validity of certain put-options exercised by Astra and its affiliates in PRSI and the trading company. The preliminary arbitral decision found that a closing should have occurred as of September 17, 2008, resulting in PAI, an indirect subsidiary of Petrobras, owning 100% of PRSI and the trading company and controlling such entities.
In April 2009, the arbitration panel issued a final decision, reaffirming the rulings in its preliminary decision and setting the put-option exercise price for PRSI at $296m. The purchase price for the trading company was based on the market price of its inventory as of July 1, 2008, totaling approximately $170m. The purchase prices for PRSI and the trading company jointly amount $466m, Petrobras said.
The arbitrators also found that Astra was entitled to reimbursement of Astra’s proportionate share of the payment of certain trading company debts, interest as well as attorneys’ fees and arbitration costs (totaling $173m). The full amount set forth in the arbitral decision was approximately $639m.
Later in April 2009, Astra delivered to PAI the stock power and assignments relating to the PRSI shares and the Trading Company partnership interests at issue in the arbitration.
PAI is considering to appeal against the March 10, 2010 ruling.
