VZCZCXYZ0000
RR RUEHWEB
DE RUEHMU #1084 2342044
ZNY CCCCC ZZH
R 212044Z AUG 08
FM AMEMBASSY MANAGUA
TO RUEHC/SECSTATE WASHDC 3069
INFO RUEHZA/WHA CENTRAL AMERICAN COLLECTIVE
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
C O N F I D E N T I A L MANAGUA 001084
SIPDIS
STATE FOR WHA/CEN, EB/IFD/OIA, AND L/CID
STATE ALSO FOR WHA/EPSC
E.O. 12958: DECL: 08/21/2018
TAGS: ECON EINV NU
SUBJECT: NICARAGUA: GON RESOLVES SENFELD PROPERTY CASE
REF: 07 MANAGUA 2442
Classified By: CDA Rich Sanders for reasons 1.4 (B) and (D).
1. (SBU) On August 14, U.S. citizen claimant Norman Senfeld
signed a settlement document, or "finiquito," for the
equivalent of $5 million to resolve his three property
claims. Mr. Senfeld will receive a payment of $2.5 million
in the form of indemnification bonds (BPIs) at the end of
August and the remaining $2.5 million in November 2009. The
GON deserves credit for sticking to its commitment to resolve
this high-profile property case.
GON RESOLVES SENFELD CASE
-------------------------
2. (U) On August 14, U.S. citizen Norman Senfeld, whose
textile plant, subsidiaries, and equipment were expropriated
by the GON in 1980, signed a "finiquito" to accept
compensation of $5 million in the form of BPIs. The GON
provided the Property Office a copy of the finiquito on
August 18. Senfeld will receive two payments in the form of
BPIs for his settlement. He will receive the first payment
at the end of August for the equivalent of $2.5 million and
the remaining $2.5 million in November 2009. Senfeld's case
represents three property claims registered with the Embassy
Property Office.
Type of No. of Type of
Claimant Claim Claims
Resolution
-------- ------- ------
-----------
Norman Senfeld Land, 3
bonds
Equipment,
Assets
PERSISTENCE PAYS OFF
--------------------
3. (U) In 1974, Senfeld created the Managua Textiles Company
which subsequently became the Textiles of America Company
(TEXAMSA) in 1979. After TEXAMSA was expropriated by the GON
in 1980, Senfeld pursued compensation for his property with
the first Sandinista government without success. In 1990,
Senfeld filed claims with the GON and sought $6 million in
compensation. Since that time, Senfeld has patiently worked
to negotiate a settlement with the government. In May 2008,
Senfeld reached an agreement in principle with the GON to
settle his claims for the equivalent of $5 million. Between
May and August, Senfeld traveled several times to Nicaragua
to finalize the agreement: He signed a letter of intent with
the government in July. During Senfeld's pursuit of
compensation, his case received U.S. congressional attention
which may have prompted the GON to finally settle his claims.
COMMENT
-------
4. (C) The GON deserves credit for sticking to its commitment
to resolve this high-profile case. We had our doubts
(reftel). GON officials told us that President Ortega
pressured Attorney General Hernan Estrada to resolve this
case because he "never wanted to hear Senfeld's name again."
End Comment.
SANDERS