Argentina's Legal Battle Intensifies Over YPF Stake Turnover

A temporary halt has been placed by a U.S. judge on Argentina's obligation to turn over its 51% stake in the oil and gas company YPF, citing a $16.1 billion judgment. U.S. District Judge Loretta Preska criticized Argentina's delay tactics and extended the deadline by three days to allow time for an emergency appeal.

Argentina lodged the appeal with the 2nd U.S. Circuit Court of Appeals, seeking relief from an order it claims jeopardizes its sovereignty and economic stability. The country argues that such a turnover would violate international law and misapply U.S. judicial powers unjustifiably.

This legal skirmish has its roots in Argentina's 2012 seizure of YPF shares from Spain's Repsol without proper tender offers, leading to a massive financial claim from minority shareholders. Burford Capital, backing these claims, maintains that commercial activity exceptions justify the stake turnover.

(With inputs from agencies.)