Argentina moves to appeal US court's YPFI handover order

Argentina moves to appeal US court's YPFI handover order

Argentina has formally requested a suspension of a US court ruling that orders the country to transfer 51 percent of the shares in the state-owned oil company YPF to settle a debt of US$16.1 billion. The appeal was filed with US Judge Loretta Preska in New York on Tuesday afternoon, as Argentina prepares its arguments for the higher court appeal. The request for suspension, if not granted, will lead to an appeal to a higher court.

Argentina's filing argues that compliance with Judge Preska's order would cause "irreparable harm" to YPF. The case is described as having "extraordinary circumstances" and not being a "simple commercial dispute between companies." The government contends that the dispute affects Argentina's sovereignty due to the involvement of "strategic assets." It also notes that selling YPF shares without Congress' intervention is not feasible.

The ruling stems from a lawsuit filed by Petersen Energía and Eton Park Capital in 2015, seeking damages for not receiving proper compensation during the 2012 renationalization of YPF from Spanish energy giant Repsol. Judge Preska ruled in favor of the plaintiffs and ordered Argentina to pay US$16.1 billion. To partially satisfy the debt, she ordered the transfer of 51 percent of YPF Class D shares to an intermediary, with a deadline of 14 days to complete the transfer.

Argentina's current government, led by President Milei, has vowed to appeal the ruling. The case is the latest in a decade-long international legal saga involving Argentina's renationalization of YPF.

References:
[1] https://www.batimes.com.ar/news/economy/argentinas-government-appeals-us16-billion-ypf-court-ruling.phtml