Buenos Aires Times

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Argentina, YPF face US Supreme Court over 2012 renationalisation

If Argentina loses the appeal, it could pay up to US$3 billion in damages.

Monday 7 January, 2019
YPF is Argentina's flagship energy company.
YPF is Argentina's flagship energy company. Foto:Perfil-File

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The United States Supreme Court will on Friday hear an appeal against a lower court ruling in favour of two former Spanish investors in Argentina's state-run energy company YPF. The case relates to the disputed 2012 renationalisation of the firm.

If Argentina loses the appeal, it could pay up to US$3 billion in damages.

In August, the US Court of Appeals for the Second Circuit allowed Petersen Energia Inversora and Petersen Energia's claim against Argentina and YPF to proceed. 

Their litigation is funded by vulture fund Burford Capital which allegedly invested in a percentage of the litigation rights. 

The investors claim that alleged mismanagement of the firm following the Fernandez de Kirchner government's renationalisation in 2012 led them to bankruptcy.

If the Court rules against Argentina and YPF, the government could use its strong ties in Washington to turn to the State Department for an opinion on the matter.

Argentina wants the claimants to be forced into the Argentine legal system. 

A US Court of Appeals ruled that US jurisdiction over the case was not hindered by Argentina's sovereign immunity, since the renationalisation was a commercial decision, a position Argentina has strongly rejected.

-TIMES

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