The New York judge of the Southern District, who is also handling the case for the renationalization of the oil companyHE pronounced in the file which follows at the request of 12 funds who decided to reject the successive debt swaps launched by Argentina and continue litigating over the fallen bonds default in 2001.
Although in the tdebt swaps (2006, 2010 and 2016) the The largest number of bondholders accepted Argentina’s conditions for paying its debt, Others decided to stay on the sidelines and continue litigating.. In light of this, the judge ruled in favor of the plaintiffs against the country.
Judge Loretta Preska ordered Argentina to pay $142 million to 12 funds
In the last few hours the ruling was announced in which Preska states that “the plaintiffs Bybrook Capital Master Fund LP (“Bybrook Master”) and Bybrook Capital Hazelton Master Fund LP (“Bybrook Hazelton” and, together with Bybrook Master, the “plaintiffs”), moved this Court for an order of summary judgment, and the Court granted summary judgment on that motion.”
In view of this, Preska indicates that “it is hereby ordered, judged and decreed that the demanding shall recover from the defendant the Argentine Republic (the “Republic”) the debt claimed. In view of this, it determines that The country will have to pay the 12 funds approximately US$142 million.
Bybrook Capital, One of the benefited creditors is a firm specialized in “distressed debt”that is, debts that are having trouble meeting their original payment terms, as is the case with Argentine bonds.
In this case, the plaintiffs’ group obtained from Preska an order of summary judgment to recover debts for that amount. Until now, the funds had not had a final ruling in their favor.
Another setback for Argentina after the ruling on the renationalization of YPF
In January of this year, the judge of New Irk rejected a request made by the Argentine Government to avoid presenting guarantees in the trial that is taking place in USA for the nationalization of YPFwhich could lead to the country beginning to suffer seizures of its assets abroad.
The argument of the national State, which pointed out “lack of access to funds” to make the security deposit, “It shows that he has not taken, and supposedly cannot take, measures for payment and that he does not have a deadline to do so”the New York judge’s brief states Loretta Preska, ruling in favor of the plaintiffs.
The decision was made by the judge Prezkawithin the framework of the case initiated by the fund Burford Capital in which Argentina was sentenced to pay compensation of US$16.1 billion.
In February, the Government, represented in USA by the Sullivan & Cromwell study and in line with the strategy proposed by the Treasury Attorney’s Office led by Rodolfo Barra, They raised before himto Court of Appeals that the judge could have committed a error in exercising jurisdiction on cases “involving the “claims by shareholders of an Argentine company under Argentine law against the Argentine Republic”They also questioned the amount that the judge ordered to be paid.
Argentina’s argument that was maintained during the negotiations Cristina Fernandez de Kirchner, Mauricio Macri and Alberto Fernandez- was that The purchase of shares of the Petersen Group from Repsol was irregular and that the jurisdiction where the conflict should be resolved is Argentina, since that is where YPF is based.
Source: Ambito
