Marco Gavazzi and Stefano Gavazzi (the “Claimants”), Romania (the “Respondent”)
Bilateral Investment Treaty between Italy and Romania
Members of the Tribunal
Hans Van Houtte (President), V.V. Veeder (Claimants’ appointee), and Mauro Rubino-Sammartano (Respondent’s appointee)
In 1999, Claimants invested in a Romanian steel company, S.C. Socomet S.A. (“Socomet”) undergoing privatization. Claimants agreed to acquire 70% of Socomet’s shares, provided that Socomet’s existing debts would be rescheduled or forgiven. But Socomet’s debts were not restructured and the Romanian government froze its bank accounts in order to cover the debt. This act and the resulting insolvency prevented Claimants from reviving Socomet.