Owens-Illinois Gives Update On Venezuela Arbitration, Says Country Might Not Be Able To Pay

Owens-Illinois Inc OI provided investors on Thursday with an update to an ongoing dispute with the government of Venezuela.

Owens-Illinois, a bottle maker, has been awarded a $455 million settlement in a nationalization claim against Venezuela. Under Hugo Chavez's rule, the government seized 2 of its glass-bottle making plans in 2010.

According to The Wall Street Journal, the company was awarded more than $372 million in compensation, plus interest charges.

Owens-Illinois reaffirmed its commitment to "take appropriate steps to vigorously enforce and collect the award" and it is enforceable in approximately 150 member states. However, the company added that collecting the nearly half a billion dollars "may present significant practical challenges."

"The Company cannot reasonably predict the efforts that will be necessary to successfully enforce collection of the award or the timing of any such collection efforts," Owens-Illinois added in its statement. "Because the award has yet to be satisfied and the annulment proceeding is pending, the Company is unable at this stage to predict the amount or timing of compensation it will ultimately receive under the award."

Finally, Owens-Illinois stated that it has not recognized the $455 million award within its financial statements.