At the time of nationalisation the industry was owned by Bookers which has since been taken over by the BFG, based in London.

Guyana had paid approximately 6.2 million pounds sterling in compensation, equivalent to almost half the nationalisation debt, but had defaulted in payment in 1989 at the time of the Latin American currency crisis.

The BFG claim was for 6.8 million pounds sterling as principal amount owed, in addition to accrued interest and cost of proceedings. When totalled, this amount would have exceeded 13 million pounds sterling.

In a statement, corporate Communications Director of BFG David Sawday stated that BFG had reviewed the matter carefully and " In the current context of the company's corporate and social responsibility...and in the interest of both the company and the people of Guyana, had decided not to proceed with the claim."

"Bookers has a fine record in Guyana", Sawday stated, adding that not only did the company develop the country's sugar industry, but it invested heavily in the social infrastructure, including the building of schools and hospitals.

The BFG has requested that the outstanding funds be channeled into projects that will directly benefit the people of Guyana.

The Jubilee Debt Campaign was lobbying the BFG to drop its claim, noting that Guyana is a poor country that was receiving debt relief on money owed to the World Bank and to countries including Britain.

The claim was due to be the subject of an arbitration hearing by the International Court for the Settlement of Investment Disputes. Final adjudication was scheduled for March 31.