Argentina found liable in multi-billion-dollar suit over 2012 YPF oil firm takeover [View all]

U.S. District Judge Loretta Preska ruled today against the Argentine state in a lawsuit over the 2012 re-nationalization of Argentine energy conglomerate YPF - although YPF itself was found not liable.

While the judge didn’t set a figure for the compensation, Argentina may have to pay US$7 billion to US$19.8 billion, right-wing Buenos Aires daily La Nación said on Friday, citing estimates provided by the funds.

The lawsuit was originally presented against Argentina in 2015 by the Argentine-based Petersen Group - which owned 25% of YPF up to 2012 - for not making a tender offer when Repsol’s shares were expropriated, thus giving them an exit from the company.

Petersen then sold the trial rights to Guernsey-based litigation finance firm Burford Capital Limited - the one now litigating against the country. Eton Park, which had held 4% of YPF, sold Burford 75% of their trial rights too.

Argentine authorities are expected to appeal.

At: https://www.batimes.com.ar/news/economy/argentina-found-liable-in-multi-billion-dollar-suit-over-ypf-oil-takeover.phtml

U.S. Southern New York District Judge Loretta Preska, and the headquarters of of Argentine energy firm YPF - the country's largest company of any kind.

While Judge Preska found YPF itself not liable to a failure to make tender offers to minority shareholders during YPF's 2012 renationalization, she did find the Argentine government at fault.

The lawsuit - snapped up in 2015 by litigation finance firm Burford Capital for $18 million - may put Argentina on the hook for $7 billion to $20 billion - well in excess of the $5 billion paid to former YPF owner Repsol for a 51% stake.

Argentina, currently struggling with a $180 billion public foreign debt, is expected to appeal - and may ultimately settle.