King & Spalding Earns $140 Million Arbitration Award for Creditors of Enron and Ponderosa


HOUSTON, TX--(Marketwire - June 21, 2007) - King & Spalding, a leading international law firm, announced today that its international arbitration team has earned a key victory for creditors of Enron Corporation and Ponderosa Assets, L.P., in their claim against the government of Argentina. King & Spalding won approximately $140 million for its clients, making this award one of the five largest ever granted by the International Centre for the Settlement of Investment Disputes (ICSID), a division of the World Bank.

The dispute arose from the passage of Argentina's so-called "Emergency Law" in January 2002, during the height of Argentina's 2001-2002 economic crisis. The law "pesified" (i.e., converted from U.S. dollars to Argentine pesos) and froze all public utility tariffs, including those of Enron's Argentine gas transportation subsidiary, TGS. The effect of these measures made TGS insolvent by reducing its revenues by nearly two-thirds.

Enron and Ponderosa claimed that the "Emergency Law" measures violated the terms of TGS's license and Argentina's obligations to them under the bilateral investment treaty (BIT) between the United States and Argentina. Argentina defended the measures as justified on the basis of the economic crisis the country faced. The ICSID tribunal accepted Enron's claim and rejected Argentina's defenses, finding that Argentina's measures violated the provisions in the BIT guaranteeing fair and equitable treatment and the observation of all obligations entered into with regard to Enron's investment in TGS.

On May 22, ICSID awarded approximately $140 million in compensation, including pre-award interest, to Enron and Ponderosa.

The King & Spalding team representing Enron was led by partners R. Doak Bishop and Craig S. Miles, of the Houston office.

Other King & Spalding lawyers who worked on the case were the following:

Counsel: Kenneth R. Fleuriet (London) and Juan P. "John" Crespo (Houston)
Associates: Roberto J. Aguirre Luzi (Houston) and Martin F. Gusy (Houston).
King & Spalding has one of the leading international arbitration practices in the world, specializing in oil and gas and energy disputes, foreign investment disputes against governments and disputes involving Latin American projects. Lawyers in the international arbitration group have represented major U.S. and foreign companies as well as foreign state-owned companies in arbitrated disputes ranging from one million dollars to more than one billion dollars.

About King & Spalding

King & Spalding is an international law firm with more than 800 lawyers in Atlanta, Dubai, Houston, London, New York, Riyadh (affiliated office) and Washington, D.C. The firm represents half of the Fortune 100, and in a Corporate Counsel survey in August 2006 was ranked one of the top ten firms representing Fortune 250 companies overall. For additional information, visit www.kslaw.com.

Contact Information: Contact: Kimberly Brooks 212-827-4378