However, that process had the endorsement of a Congress Law voted by a large majority in April 2012 and was not random: A year earlier, Vaca Muerta was rediscovered and all its oil and gas potential. This is the real booty looking for the litigating background and who are behind.
What claims and what won the Burford Buitre Fund
The English law firm, a specialist in acquiring demands From sovereign countries, he is the main winner of the sentence in the first instance of March 2023 in which the Judge of New York condemned Argentina for the expropriation of YPF In 2012. The amount was set in a second sentence months later.
The main demand for Burford It is argued that, according to article 7 of the YPF Statute, if someone bought more than 15% of the company should offer the same to all shareholders and not only Repsol.
In addition, the Buitre Fund alleges damage because after entering the company, the State decided to suspend the dividend turn that had been agreed between Repsol and the Petersen group, which triggered that the Eskenazi companies would enter default by not being able to pay their debts.
Thus, in September 2023 the magistrate issued a sentence of first instance that forces the country to pay a compensation of U $ S16,099 million Because of the way in which the oil company was renationalized, without making the other shareholders a public acquisition offer, as was in the statute defined in 1993 during the privatization promoted in the presidency of Carlos Menem.
The share package that Loretta Presska pretends that Argentina give Burford It was acquired by the National State to La Española Repsolbut currently remains under state control. The magistrate gave a deadline for the delivery of 14 days since her signature.
What did the US government say about this case?
Days after the second electoral triumph of the president Donald Trump In the US -and still under the administration of Joe Biden-, The US Department of Justice was issued against the argument expressed by Burford, By pointing out that the request of the plaintiffs “Viola the norms of sovereign immunity from the United States.”
The fear of the Biden government at that time was that the fulfillment of a forced seizure 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.
What is the Loretta Presska failure
The background Burford He had already tried to keep shares and assets of the National Bank of Argentina, Aerolineas Argentinas and even from the Central Bank of the Argentine Republic as a form of payment, but was not successful.
One of the options that Argentina’s defense lawyers have is to appeal the sentence, and try to climb to the US Supreme Court. Another alternative is to ask for a suspension of the execution of the sentence, and gain time in appeal. But what the US justice and the Burford fund seek is to negotiate some type of compensation and payment plan for US $ 16,099 million.
Sources linked to “Judgment of the century” -As studied in several universities- they revealed to Scope That is Judge’s decision seeks to open a negotiation period with representatives of the National State, after senior officials put the case in stand by and they did not offer any payment guarantee for US $ 16,099 million.
But they also say that Any type of YPF shares should be approved by the National Congressthrough a specific law, because it was renationalized, according to the constitutional mandate of the country. In this case, it would be the National Government or some legislator who must promote and present the text of a rule that complies with the New York ruling.
And in case the president Javier Milei decide to comply with the Pruka judgment and do so for Decree of necessity and urgency (DNU), The actions – and the control of the flag oil company – would pass back to private hands if that DNU is endorsed by Congress. Never before.
From the Legislative Palace they also revealed that the President could request a special permit by law to Congress to face a negotiation with vulture funds before the US justice and try to significantly reduce the amount of the ruling, with a view to closing a long -term agreement.
What did Javier Milei say after the ruling by YPF
With a publication entitled “A failure against Kicillof”President Javier Milei announced that they will appeal the judge’s ruling. “All Argentines know that we are going to appeal this ruling in all the corresponding instances to defend national interests,”he said.
What kind of shares ordered the judge to transfer
The actions he ordered to transfer are Class d of YPF, those that originated from the sale of class A and class B shares to the private sector.
Class A actions belonged to the national state, while class B were owned by the provinces with hydrocarbon deposits.
In the bag, these actions are negotiated with the symbol YPFD in Argentina and YPF In New York.
This is the current shareholding composition of YPF:
Class a shareholders
National State 3,764 (0.001%)
Class B shareholders
Provinces 7,624 (0.002%)
Class c
EMPLOYEE FUND 40,422 (0.010%)
Class d shareholders
National State 200,589,525 (51,000%)
Public 192,671,458 (48,987%)
How much YPF actions fell
Known the novelty, YPF’s shares accelerated their fall and lost 5.64% in Wall Street when falling from US $ 33,24 au $ S31.45.
In S% P Merval dropped 5% from $ 39,700 to $ 38,100, although during the day the collapse came to play $ 37,300.
Today the stock market value of the company does not exceed US $ 6,000 million.
Another sentence that demands YPF actions: is for the default of 2001
In parallel, Judge Preska also ordered Argentina to deliver YPF actions to Bainbridge background, as a counterpart of payment for the Judgment related to the 2001 debt default and his refusal to enter the posterior exchange.
This conflict -inpaper to that of Burford background– involves Argentine assets linked to the collateral of the Brady bondswhich had been delivered as a guarantee for the payment of the restructured debt in the 90s. In 2023, Argentina culminated the payment of their obligations, which released certain assets. However, the recent dispute resulted in new embargoes.
The funds Bainbridge as ATTESTOR MASTER, Trinity Investments, and Bison Bee LLC They are Argentine debt holders that did not participate in the exchanges made by the country in 2005, 2010 and 2016, and now seek to recover their investment through the seizure of assets of the National State.
Attestor Master You have the right to US $ 460 million, and Bainbridge Fundover US $ 100 million. For these debts, the magistrate also ordered to deliver YPF actions.
Source: Ambito
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