Last Monday the litigants Burford capital, that bought the litigation rights of the Petersen Energy Group and IEASA (ex enarsa), and ETON PARK CAPITAL MANAGEMENT, They asked in writing the execution of the sentence, which seeks to charge compensation of US $ 16,099 million in Class D Actions of the private state of the state. They already tried to charge with assets from Banco Nación, Aerolineas Argetinas and even the Central Bank, but they did not succeed.
Why Argentina’s lawyers appealed early
In response to that presentation of the funds, the American lawyers of the study Cleary Gottlieb Steen & Hamilton LLP hired by the Treasury procurement -There in charge of Santiago María Castro Videla- They responded with the main arguments wielded by Argentina, which reject the Preska ruling.
According to sources linked to the case, the study strategists appealed without waiting for a definition of Loretta Pressa on the request for “Stay” previously carried out. This appeal is expected for the next 15 days, not now. Possibly, lawyers expect another resounding set against the country in this trial, and an order of embargo on financial institutions. For that reason and to gain time, they already decided to present the appeal and that it is an elevation court that defines the steps to follow.
YPF is not part of the trial, or the process in the second Judicial District of New Yorkbut it is one of the “ankle boots” of the lawsuit between private and the national state. YPF He has no lawyers working in the case, nor is it part of the negotiations or official presentations.
In fact, The president and CEO of YPF, Horacio Marín, remained outside the lawsuit. “I am an executive, employee of YPF, and Burford made a judgment to YPF and the National State. Judge Preska failed in favor of YPF, failed against the Republic. I can’t comment“He said.
The reasons for Argentina’s rejection to Loretta Preska’s sentence
In the case Eton Park, State lawyers talked about “Exceptional nature and unsolved legal issues” And they stressed that it is an unprecedented case, with an appeal ruling and complex legal foundations. “Even the United States government has expressed differences with the interpretation of the court,” They stand out.
The fear of the US government is that the fulfillment of a forced embargo of Argentine companies opens an international jurisprudence that violates US laws, because at the same time it would allow -in a hypothetical future – that there is some type of reciprocity and that Argentina can do the same – to be forced – with a company or a sovereign active from the United States.
Another argument is the irreparable damage and impossibility of legal compliance, since executing the “turnover” would force Argentina to violate its national legislation and to lose state control over YPF irreversibly. As Kicillof said, YPF actions “can only be delivered by a law voted for two thirds of Congress“As established by the law that was approved in 2012 by a large parliamentary majority.
Finally, The absence of damage to the plaintiffs and public interest was wielded. According to the Argentine defense, there is no specific damage if the execution is suspended, given that local legislation prevents the sale of shares without legislative guarantee. In addition, advance with the order would affect not involved third parties – such as provinces and bonds – and could activate harmful clauses for YPF.
Failure by the 2001 default: another case, another appeal in progress
In parallel and for the other trial lost by Argentina referring to the debult debt of 2001 (called the case Bainbridge)Argentina’s lawyers warned a violation of Argentine law since transferring actions would imply breaking Law 26,741, which enshrines the public domain over hydrocarbon resources. In this second case, the magistrate also ordered to deliver YPF actions as compensation.
However, the defenders also warned that there are no jurisprudential history that endorse assets of another State in the US under the conditions proposed by the order of Judge PRell, “What reinforces the chances of reverse the failure”they complete.
Source: Ambito
