Mexico Takes Claim Against Metalclad to Canada Court
The Mexican government’s challenge of a $16.9-million award to Metalclad Inc. will be heard by a Canadian court on Feb. 12, the Newport Beach hazardous waste management company said Wednesday.
The company said in a press release that the Mexican government seeks to overturn the award made Aug. 30 by a tribunal set up under the North American Free Trade Agreement.
In August, the NAFTA tribunal ruled that Mexico expropriated a hazardous waste landfill site built by Metalclad when it declared the area an environmental reserve. As a result of that decision, Mexico must pay Metalclad the award, plus interest at 6% a year, compounded monthly.
The company said that after collecting the award, it will have about $3 a share outstanding in cash and “substantial” tax benefits, which allow it to use net operating losses and capital losses to reduce future taxable liability.
Metalclad also said that a holder of convertible debt securities has converted $1.1 million in notes into 795,910 common shares, raising the total number of shares outstanding to nearly 6.6 million. The balance of the notes, totaling $1 million, is due Dec. 31, 2002.
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