Argentina's Courtroom Drama: Fight to Retain YPF Stake

A U.S. judge has temporarily paused the enforcement of an order demanding Argentina hand over its 51% stake in oil and gas firm YPF as partial payment for a $16.1 billion court judgment. The ruling offers a temporary reprieve as Argentina faces severe economic challenges.

The decision came from U.S. District Judge Loretta Preska in Manhattan, who extended the deadline for Argentina to comply until July 17, allowing time for an appeal. Argentine President Javier Milei faces daunting economic tasks, including shoring up foreign reserves and controlling inflation.

This legal dispute originates from Argentina's 2012 seizure of YPF shares from Spain's Repsol without compensating minority stakeholders Petersen Energia Inversora and Eton Park Capital Management. Represented by litigation funder Burford Capital, the shareholders anticipate substantial payouts, but Argentina has yet to settle the judgment as it navigates complex legal arguments.

(With inputs from agencies.)