02/ 23 Closing Prices / revised 02/23/2024 21:59  GMT 02/22   OPEC Basket  82.90 + 0.91  | 02/23    Mexico Basket (MME)   $72. 22 -2.05 | 01/13    Venezuela Basket (Merey)  $66.50  +1.30   | 02/23     NYMEX WTI Texas Intermediate April  CLJ24   $76.49 -2.12 | 02/23    ICE Brent April BRNJ24     $81.62 -2.05 | 02/23     NYMEX Gasoline March  RBH24   $2.28  -2.5% |  02/23    NYMEX  Heating Oil March  HOH24   $2.69   -2.3%   | 02/23    Natural Gas March NGH24    $1.60  -7.5% | 02/23    Active U.S. Rig Count (Oil & Gas)    626   +5  | 02/23    USD/MXN Mexican Peso  17.1166  (data live  | 02/23     EUR/USD    1.0821  (data live)  | 02/23    US/Bs. (Bolivar)   $36.06980000  ( data BCV)  

Argentina’s $16.1 Billion Judgment Is Now Open to Collection – Bloomberg

Burford Capital can begin efforts to seize assets, judge rules. Reasonable time has passed since judgment, US court finds. (YPF)
Burford Capital can begin efforts to seize assets, judge rules. Reasonable time has passed since judgment, US court finds. (YPF)

Bob Van Voris and Jonathan Gilbert, Bloomberg News

NEW YORK/BUENOS AIRES
EnergiesNet.com 01 12 2024

Investors seeking to collect a $16.1 billion court judgment from Argentina over its 2012 takeover of oil company YPF SA can start going after its assets, as a US judge ruled against the nation’s bid to push back those collection efforts.

The ruling, in favor of litigation funder Burford Capital, is a blow to Argentina as it appeals US District Judge Loretta Preska’s September judgment — the biggest ever ordered by the federal court in Manhattan. The South American nation, beset by economic distress including surging inflation, says the judgment equals almost one-fifth of its 2023 budget and that paying it would cause severe hardship.

Argentina has used legal requests of the court and a transition in presidential administrations as an excuse “to dodge its obligations on the final judgment,” Preska wrote in her ruling.

“There is no evidence of any attempt to pay the final judgment,” she said.

Rich Rewards

Burford, which is pursuing claims for former YPF shareholders, stands to reap $6.2 billion of the judgment, which would give it a more than 37,000% return on its initial investment. That would be by far the most successful outcome yet in litigation funding, the often controversial $13.5 billion business of investing in lawsuits.

The ruling came after Argentina missed a Jan. 10 deadline to pledge assets — an equity interest in YPF and proceeds from a hydroelectric dam project. The pledge would have allowed it to appeal the judgment without having to post a bond securing the full amount. 

Burford didn’t immediately return an email seeking comment on the ruling. A spokeswoman for Argentina’s Economy Ministry didn’t return a phone message.

Tough to Collect

Actually collecting the judgment may not be easy. US law limits the type of sovereign property that can be used to satisfy a judgment, often prompting creditors to scour the globe for overseas assets that can be seized. In one vivid incident, Paul Singer’s Elliott Management briefly seized an Argentine naval training vessel docked in the African nation of Ghana during the investment firm’s 15 years of litigating over Argentina’s 2001 sovereign debt default.

A lawyer for Burford had said in a letter to Preska that it was “not on the cusp” of seizing Argentina’s overseas assets. Burford Chief Executive Officer Christopher Bogart said in September that he was “not sure that seizing ships is the best strategy.” 

When Argentina took 51% of YPF in 2012, it violated a bylaw that it must make a tender offer to all shareholders. Preska ruled in September that two companies that held stakes at the time and didn’t receive offers — Petersen Energia and Eton Park, which later filed suit — should be paid $16.1 billion.

In her ruling on Thursday, Preska agreed with Burford’s position that a reasonable amount of time had passed since the judgment, rejecting Argentina’s argument that the investors shouldn’t be allowed to start going after assets yet. 

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

–With assistance from Emily Siegel.

bloomberg.com 01 11 2024

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com


CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved
 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

 
 
Scroll to Top