Argentina Granted 3-Day Extension to Hand Over YPF Shares

Argentina has been granted a three-day extension by Judge Loretta Preska to appeal her order to transfer its majority stake in YPF SA to beneficiaries of a $16,000 million settlement. Preska suspended her June 30 order, allowing Argentina to argue that she exceeded her jurisdiction in the appeal court. The government of President Javier Milei faces a 14-day deadline to transfer the 51% stake to a group led by Burford Capital.

Argentina has been granted a three-day extension by U.S. District Judge Loretta Preska to appeal her order to transfer its majority stake in YPF SA to beneficiaries of a $16 billion settlement. Judge Preska suspended her June 30 order, allowing Argentina to argue that she exceeded her jurisdiction in the appeal court. The government of President Javier Milei now faces a 14-day deadline to transfer the 51% stake to a group led by Burford Capital.

The initial ruling by Judge Preska ordered Argentina to turn over the shares within 14 days to a group led by Burford Capital, a litigation funder that bought the interests of the original shareholders. The ruling found that Argentina's 51% stake in YPF was not shielded by foreign sovereign immunity and that the shares were used for commercial purposes in the United States [1].

This decision marks a significant shift in the enforcement of judgments against sovereign states. It challenges traditional notions of sovereign immunity and sets a precedent for foreign courts ordering specific acts by sovereigns. The case highlights the increasing willingness of courts to assert authority over foreign states, even in matters of expropriation and investment treaty violations [3].

The extension comes as Argentina seeks to argue that Judge Preska exceeded her authority by ordering the turnover. The government has contended that domestic law prohibits the transfer of YPF shares without a two-thirds vote of Congress. However, Judge Preska rejected this argument, emphasizing that Argentina could seek legislative approval or otherwise satisfy the judgment [3].

The implications of this ruling extend beyond Argentina. It sets a precedent for foreign courts ordering specific acts by sovereigns, potentially expanding the scope of available remedies for creditors and narrowing the space for sovereign immunity. The decision also raises questions about the balance of international comity, state sovereignty, and the supremacy of transnational enforcement norms [3].

In light of the extension, investors and financial professionals should closely monitor the developments in this case. The outcome of the appeal could have significant implications for the enforcement of judgments against sovereign states and the broader landscape of international commercial disputes.

References:
[1] https://news.bloomberglaw.com/bankruptcy-law/us-judge-extends-argentinas-ypf-handover-deadline-by-3-days
[2] https://www.bloomberg.com/news/articles/2025-07-14/us-judge-extends-argentina-s-ypf-handover-deadline-by-3-days
[3] https://www.linkedin.com/pulse/erosion-sovereign-immunity-how-ypf-case-empowers-foreign-dikna-vw94e