Argentina scored a major victory as a US appeals court reversed a ruling ordering it to pay US$16.1 billion over the seizure more than a decade ago of state-run oil company YPF SA.
The Manhattan judge who issued the award wrongly ruled in favour of former shareholders who said they were harmed by the nationalisation of the Argentine oil company, a federal appeals court said Friday. The suit was backed by litigation funder Burford Capital Ltd., which would have taken a large share of the award.
Burford’s US shares plunged as much as 54 percent on Friday. The firm didn’t immediately respond to a request for comment.
The appeals court ruling marks a significant victory for President Javier Milei and helps clear the government’s path to a return to international markets at some point. He had refused to negotiate with the plaintiffs, creating a stand-off that could have muddied future bond sales in this legal saga.
“We won in the YPF lawsuit...!!!” Milei posted on X.
The Burford-backed plaintiffs could appeal to the US Supreme Court, a process that could drag on for months or even years. The ruling for now shuts down efforts by Burford to collect on the judgment and puts its chances of ever being paid in greater doubt.
US District Judge Loretta Preska issued the award in 2023, after finding the nationalisation violated the YPF’s by-laws requiring a tender offer to shareholders. The US Second Circuit Court of Appeals said Preska misinterpreted Argentine law.
related news
by Bob Van Voris, Bloomberg
Comments