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US District Court (SDNY) imposes escalating daily fines doubling fortnightly and anti-suit injunctions against Terra Towers for non-compliance with ICDR awards in Latin American telecoms shareholders’ dispute

Published on: 25 April 2025

Published by a LexisNexis Arbitration expert
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Telecom Business Solution, Llc v Terra Towers Corp No. 22-1761, SD NY, 2025 US Dist

US Judge Lewis A. Kaplan of the Southern District of New York has imposed coercive sanctions: US$10,000 per day to begin against certain parties in May 2025, and US$20,000 per day against other parties starting in June 2025, with each fine set to double every fourteen days until the contempt is cured.

Telecoms dispute

The dispute centres on a shareholders agreement (SHA) binding the shareholders and investors in Continental Towers LATAM Holdings Ltd, a telecommunications infrastructure company that owns and operates telecommunication towers and related assets across Latin America. The minority investors are Telecom Business Solution Llc and LATAM Towers Llc—both Delaware entities backed and financed by Peppertree Capital Management—and AMLQ Holdings (Cay) Ltd, a Cayman Islands entity funded by Goldman Sachs & Co Llc (collectively, the petitioners). The majority holders are Terra Towers Corp, a British Virgin Islands entity, and TBS Management SA, a Panamanian company (together, Terra), together with DT Holdings Inc (DTH) (collectively, the respondents). Agreed in 2015, the SHA gave the minority the ability to compel a sale of Continental five years after their investment, if specified conditions were met under the SHA...

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