Argentina found liable in multi-billion-dollar suit over 2012 YPF oil firm takeover

[peppertree]

U.S. District Judge Loretta Preska ruled today against the Argentine state in a lawsuit over the 2012 re-nationalization of Argentine energy conglomerate YPF - although YPF itself was found not liable.

While the judge didn’t set a figure for the compensation, Argentina may have to pay US$7 billion to US$19.8 billion, right-wing Buenos Aires daily La Nación said on Friday, citing estimates provided by the funds.

The lawsuit was originally presented against Argentina in 2015 by the Argentine-based Petersen Group - which owned 25% of YPF up to 2012 - for not making a tender offer when Repsol’s shares were expropriated, thus giving them an exit from the company.

Petersen then sold the trial rights to Guernsey-based litigation finance firm Burford Capital Limited - the one now litigating against the country. Eton Park, which had held 4% of YPF, sold Burford 75% of their trial rights too.

Argentine authorities are expected to appeal.

At: https://www.batimes.com.ar/news/economy/argentina-found-liable-in-multi-billion-dollar-suit-over-ypf-oil-takeover.phtml

U.S. Southern New York District Judge Loretta Preska, and the headquarters of of Argentine energy firm YPF - the country's largest company of any kind.

While Judge Preska found YPF itself not liable to a failure to make tender offers to minority shareholders during YPF's 2012 renationalization, she did find the Argentine government at fault.

The lawsuit - snapped up in 2015 by litigation finance firm Burford Capital for $18 million - may put Argentina on the hook for $7 billion to $20 billion - well in excess of the $5 billion paid to former YPF owner Repsol for a 51% stake.

Argentina, currently struggling with a $180 billion public foreign debt, is expected to appeal - and may ultimately settle.

[Judi Lynn]

1. It would be appropriate if the ones who drove this new vulture attack were named.

If I recall, almost the entire country was behind President Cristina when this happened before....

People protested openly in the streets, to put it mildly.

Looked for Burford Capital, not knowing a thing about them:

Behind Burford Capital: the litigation funder under siege
Group attacked by US hedge fund put new financing model on the map

. . .

Burford’s most feted success has been the financing of a landmark .claim by Petersen, a Spanish conglomerate. Burford stumped up $18m to finance its claim against Argentina stemming from the renationalisation of an oil company. While the case is ongoing Burford has already raked in $236m selling on the potential future payout to third parties.

More:
https://archive.ph/mRXQV#selection-2011.0-2014.0

🦈 🦈 🦈 🦈 🦈 🦈 🦈 🦈 🦈 🦈

What child ever want to become one of these guys, as an adult?

[peppertree]

2. Basically, they're British pirates based in Guernsey - a major tax haven and money laundry

(the fat one's Chris Bogart, the CEO)

But there's little reason to be hopeful, Judi - given the vulture fund precedent. Small wonder they're already selling rights to the payout.

In that case, you'll recall, a Caymans based money laundry controlled by GOP megadonor Paul Singer bought old, defaulted Argentine bonds on the black market (not from Argentina) for $48 million - and then sued for 16 times more.

Once Trump's pal Macri was elected in 2015, Singer stocked up on another $200 million - and then cashed in for over $2 billion (an 1,160% return).

It's legalized fraud, plain and simple - and those who applaud it, deserve the same thing (and it does happen - just ask farmers, or Trump contractors).

Thanks for reading and sharing, Judi. Have a great Sunday, All the Best.

[Judi Lynn]

3. Very dour, unpleasant looking group. How completely strange people like them and Singer are.

They probably don't have any mirrors in their homes, unable to look into them!

What sad news it is to learn Pinger is still clanking around.