Venezuela

Asset Recovery

Construction and Insurance

Caracas, Venezuela

Research

Challenge

A political risk insurer had underwritten a political policy for a foreign company that had entered into a joint venture with a Venezuelan firm for a large infrastructure project. Shortly after the initiative began, the Venezuelan government nationalized the project and as a result, the foreign company filed an insurance claim. Before determining whether to pay the claim, the underwriters needed to understand the full extent of the seizure and the events that proceeded it.

Solution

 Madison Springfield was engaged to investigate the circumstances surrounding the expropriation and ascertain whether any of the project assets were recoverable in order to offset any resulting claim. This investigation involved interviews of executives from the joint venture and government officials, research of public records, and financial analysis.

Result

During the course of the investigation,  Madison Springfield consultants uncovered certain irregularities that the company's lawyers were able to use to pursue a recovery of a substantial portion of the overall claim.