A United States judge ordered on Monday that Argentina handed over its majority participation to state-owned ypf oil company as a partial payment of a $ 16 billion court sentence against the South American country.
Judge Loretta Preska in New York has given Argentina 14 days to transfer actions to a global custody account. Last year, Burford Capital asked Presok to grant it 51% in YPF currently held by Argentina’s federal and provincial governments.
The case in American courts originates from the expropriation of the YPF by the Argentine government in 2012. In 2023, Presok decided that nationalization violated the YPF statute, which required the company to make a public offer to all shareholders, and ordered the Republic to pay US $ 16 billion in compensation and interest.
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This decision is in the appeal, but Argentina had no guarantees for the judgment during the appeal. This led Presok to determine that the sentence – the largest already ordered by the Federal Court of Manhattan – was subject to immediate execution, even before the appeal judgment.
The Argentine Ministry of Economy and President Javier Milei’s spokesman did not immediately respond to requests for commentary on the decision.
YPF stock receipts traded in the US expanded losses after the decision of the decision. State oil company fell up to 5.2%, reaching a new minimum in the session, around US $ 31.60 per share, representing the largest intraordinary drop since April.
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Burford’s shares have fired in New York, rising up to 21% with the news, recording the largest intraordinary jump since September 2023, before returning some of the gains.
The judge rejected Argentina’s argument that the principle of international commotion – respect for official laws and acts from another country – required her to grant Argentina the decision on the transfer of actions.
“While the Republic requires that this court grants, it simultaneously refuses to make any effort to comply with the court’s unusual judgment,” said Preska.
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The case is Petersen Energy Inverter Sau v. Argentine Republic, 15-CV-02739, US District Court, Southern District of New York (Manhattan).
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