U.S. Court Stalls Argentina's YPF Stake Turnover Amid Legal Battle
A U.S. judge has temporarily paused the enforcement of a ruling requiring Argentina to forfeit its 51% stake in oil and gas giant YPF to satisfy a $16.1 billion judgment. The halt gives Argentina time to appeal, as it balances its economy and government debt challenges.
A U.S. judge has put a temporary hold on the requirement for Argentina to transfer its 51% stake in YPF, following a $16.1 billion court ruling. This pause by Judge Loretta Preska offers Argentina, grappling with economic and debt crises, a chance for an appeal.
The contention stems from Argentina's 2012 move to seize YPF shares from Repsol without a tender to minority shareholders. The shareholders, backed by Burford Capital, were awarded damages by Preska in September 2023, demanding $14.39 billion to Petersen and $1.71 billion to Eton Park.
As Argentina appeals, it argues its YPF shares are shielded under U.S. Foreign Sovereign Immunities law. The nation warns that the forced turnover would harm its sovereignty and infringe on international laws, likening it to a hypothetical foreign court commandeering U.S. resources.
(With inputs from agencies.)
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