USD 116 million damages lawsuit against major Peruvian bank. Estudio Olaechea is defending BCP in a lawsuit filed by Cerrón Muñoz against it and other parties, claiming damages up to USD 116 million. Our firm has so far succeeded in having the claim for damages deemed unfounded.
Successful defence confirming decision in Superior Court: We have succeeded in having this decision confirmed by the Peruvian Superior Court. This means our client will not be obliged to pay compensation to Cerrón Muñoz. In this sense, we have achieved the issuance of a successful and favourable resolution in the most important dispute faced by our client.
Risk of losing collateral in event of co-defendant loss: The lawsuit also requests that CAASAC—a co-defendant—vacate the plant where its operations are located and that the pre-existing buildings be demolished. Our client has secured loan agreements with CAASAC to expand and/or improve the plant where the latter operates. Should CAASAC lose the lawsuit, our client would be left without collateral to secure the repayment of the loans. We are promptly addressing this side of the matter as well.
Major player for over a century in Peruvian banking sector: BCP is Peru’s oldest and largest bank. It was founded in 1889 by a group of Italian businessmen. Today it also operates branches in New York and Nassau, with a subsidiary in Bolivia.
Latest development: The proceedings are currently at the evidentiary stage as the court has ordered an expert inspection of the site where CAASAC’s plant is located.
