© Reuters. The headquarters of the Argentine oil firm YPF is seen in Buenos Aires, Argentina November 21, 2023. REUTERS/Agustin Marcarian
By Jonathan Stempel
NEW YORK (Reuters) – Argentina persuaded a U.S. decide to not implement a $16.1 billion judgment arising from the federal government’s 2012 seizure of majority management in oil firm YPF whereas the cash-strapped nation appeals the judgment.
In a choice on Tuesday, U.S. District Judge Loretta Preska in Manhattan agreed to droop enforcement till Dec. 5 with out requiring Argentina to publish bond, however mentioned the nation should pledge its fairness curiosity in YPF plus some receivables to the plaintiffs.
She additionally mentioned that as a result of the quantity of safety being pledged is “minimal,” Argentina should expedite its attraction.
The judgment arose from Argentina’s April 2012 choice to grab a 51% stake in YPF held by Spain’s Repsol (OTC:), saying underinvestment justified the seizure, with out tendering for shares held by minority buyers.
Two buyers, Petersen Energia and Eton Park Capital Management had been awarded the $16.1 billion together with curiosity in September after suing.
Burford Capital funded the litigation and has mentioned it was entitled to 35% and 73% of Petersen’s and Eton Park’s respective damages.
Lawyers for Argentina and the plaintiffs didn’t instantly reply to requests for remark.
Argentina had argued that imposing the judgment or requiring a bond would “cripple” a rustic affected by triple-digit inflation, drought, a weakened foreign money and a $235 billion debt burden.
Preska mentioned she was “dubious” that Argentina would win its attraction.
She however mentioned that “particularly in light of the questions of Argentine law decided in this case, the court finds that international comity counsels that the Republic have its day in the court of appeals without the havoc that posting a bond in the full amount might cause.”
Argentina’s troubled funds had been a significant component in Sunday’s election, the place voters selected Javier Milei, a right-wing libertarian economist, because the nation’s subsequent president.