US judge extends Argentina’s YPF handover deadline by three days

The New York federal judge who gave Argentina until Monday to cede its controlling stake in YPF SA to holders of a US$16-billion judgment granted the South American nation a three-day extension to seek a longer delay from an appeals court.

US District Judge Loretta Preska’s Monday ruling put her June 30 order on a brief hold, but she denied Argentina’s request for a longer stay, saying the nation “continues to delay and circumvent its obligations.” The judge also cited the nation’s failure to post an appeal bond, which is required to stay enforcement of the ruling until the appeal is decided.

Argentina has asked a federal appeals court for more time, arguing that Preska exceeded her authority by ordering the turnover.

Preska, who ruled in 2023 that Argentina owed billions to shareholders affected by a 2012 nationalisation of YPF, found last month that the country’s 51-percent stake wasn’t shielded by foreign sovereign immunity. She ordered Argentina to turn over the shares within 14 days to a group led by Burford Capital, a litigation funder that bought the interests of the original shareholders.

The case is Petersen Energia Inversora v. Argentine Republic, 15-v-02739, US District Court, Southern District of New York (Manhattan).