Argentina Asking the Court of Appeals for the Implementation of the Judgment of $ 16.1 billion ypf
By Jonathan Stempel
New York (Reuters) – A US appeals court on Wednesday will consider whether Argentina must pay investors $16.1 billion after it regained control of a state-owned oil company.
The 2nd US District Court in Manhattan will review the US District Judge Loretta Presa’s September 2023 You are not allocated to two small shares of YPF.
Burford Capital has funded many of the lawsuits and could raise billions of dollars if investors step up. It is possible that Argentina could appeal the loss to the US Supreme Court.
The result is important for Argentina and its President Javier Milei, whose party won a decisive victory in Sunday’s election in Sungalenland.
Argentina has warned a major ruling could cripple its economy, which has long been saddled with debt and triple-digit inflation.
Milei, a free-market libertarian, since becoming President in December 2023 has killed a lot of money and jobs, while reducing monthly inflation to 2.1% and giving Argentina its first budget in 14 years.
US President Donald Trump gave Miley a $40 billion bill, including a $20 bill exchange
YPF shareholders challenged the 2012 bankruptcy
The decision reflects Argentina’s decision in 2012 to adjust the shares of ypf from Spain’s Repol for about $ 5 billion, without doing the management of the money of the small shareholders with a variety of Petersen Ennersora and Eton Park Capital Management.
Argentina’s President Cristina Fernandez de Kirchner said at the time that ypf, which was nationalized, should fail to produce oil and natural gas to continue meeting local demand.
Petersen and Eton Park, respectively the second and third investors, say that Argentina’s actions caused billions of dollars in damages.
Prema found that Argentina had breached its obligations, ordering it to pay $14.39 billion to Petersen and $1.71 billion to Eton Park. Those figures show $8.43 billion of mortgages, and $7.67 billion of interest foreclosure at a rate of 8%.
In its statement, Argentina said that the case is not in the court of the American court, that it did not reveal its legal immunity and that the damages with $ 16.1 billion represent 45% of its total budget in 2024.
Argentina also said that Prema sued Argentina’s law, and that the principles of international madness, or the respect that countries are able to limit by limiting how far their laws reach, are wrong.
