(Sept. 6, 2005) Chilean supermarket retailer Distribucíon y Servicios SA (D&S) lost the first round in its two-year-old lawsuit against the Dutch company Royal Ahold on Tuesday. D&S is seeking US$46 million in compensation for the sale of its retail stores in Argentin .
D&S claims the Dutch company used Argentine money conversion laws to evade full payment of an outstanding debt. In 2000 Ahold acquired D&S’s ten Ekono supermarkets, located in Argentina, for US$150 million. Ahold paid an initial sum of US$ 60 million and was to pay the remaining US$90 million later.
After this purchase, Argentina’s congress approved new laws of pesification allowing Ahold to complete their payments in Argentinean pesos. D&S claims that this allowed Ahold to pay less than what was originally agreed upon.
D&S Chief of Finances, Miguel Nuñez said, “From our point of view, this discussion is just beginning…while this has not be definitively resolved, in our opinion and in the opinion of our lawyers, the loss of the first round should not have any effect on the profits of the company.” D&S plans to appeal the decision.
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