Argentina's YPF Stake Court Battle: A Clash Over Sovereignty and Economic Stability
A U.S. judge has temporarily spared Argentina from surrendering its 51% stake in YPF, following a $16.1 billion court judgment. Judge Loretta Preska criticized Argentina for delaying payment, while the country warns that giving up control of YPF could destabilize its economy. The dispute stems from a 2012 takeover.
On Monday, a U.S. district judge in Manhattan temporarily prevented Argentina from turning over its majority stake in YPF, an oil and gas firm, to partially satisfy a $16.1 billion judgment. Accompanying this decision was a sharp rebuke from Judge Loretta Preska, critiquing Argentina's evasion of its financial obligations.
The judge extended a deadline to July 17, allowing Argentina time to seek further relief from the 2nd U.S. Circuit Court of Appeals. This comes amid concerns that relinquishing its controlling stake could destabilize the country's already fragile economy.
The case stems from Argentina's 2012 expropriation of the YPF stake from Repsol without compensating minority shareholders Petersen Energia Inversora and Eton Park Capital Management, leading them to be awarded $16.1 billion. Argentina is appealing the ruling, citing violations of its sovereignty.
(With inputs from agencies.)
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