London court says investors can seize Spanish property in debt dispute

The Spanish state-owned land in the upscale West London area that can be seized by the investors - Infrastructure Services Luxembourg and Energia Termosolar - houses the Vicente Cañada Blanch Spanish Institute, an international private school located in a former Dominican convent. Nick Cherryman, one of the lawyers representing the investors, said the step was "only necessary because Spain, a recalcitrant debtor, refuses to honour the judgment against it".

London's High Court has ruled that two investors in Spanish solar energy plants are entitled to seize a Spain-owned property in London to enforce a 120 million-euro ($131 million) judgment in a long-running dispute over renewable energy incentives. The court's interim charging order - meaning it is not yet final and can be objected to by the debtor - was issued on Wednesday but made public on Friday.

Spain's Foreign Ministry had no immediate comment. The Spanish state-owned land in the upscale West London area that can be seized by the investors - Infrastructure Services Luxembourg and Energia Termosolar - houses the Vicente Cañada Blanch Spanish Institute, an international private school located in a former Dominican convent.

Nick Cherryman, one of the lawyers representing the investors, said the step was "only necessary because Spain, a recalcitrant debtor, refuses to honour the judgment against it". He added that the order entitled his clients to sell the freehold land, but not the school itself, whose day-to-day activities are not to be impacted.

The investors took Spain to arbitration under the Energy Charter Treaty nearly 10 years ago for withdrawing subsidies for renewable energy. Spain, which relies heavily on foreign energy sources, tried in the early 2000s to lure renewables investors with a programme combining subsidies, tax breaks and guaranteed fixed feed-in tariffs.

But after the 2008 financial crisis, it started altering the framework under which renewables could receive support, which some investors saw as a violation of their legitimate expectations. The World Bank's International Centre for Settlement of Investment Disputes (ICSID) awarded Infrastructure Services Luxembourg and Energia Termosolar 101 million euros plus interest in 2018, with the award later being registered at London's High Court.

Spain tried to overturn the award citing sovereign immunity, but the High Court dismissed Madrid's application in May. ($1 = 0.9142 euros)

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