U.S. Court Delays Transfer of YPF Shares Amid Argentina's Legal Battle

A US court has delayed the transfer of shares in Argentina's state energy firm YPF for a week, granting the country a temporary reprieve in its legal battle over the 2012 expropriation of the firm. The Second US Circuit Court of Appeals in New York issued the order, effectively halting the transfer of shares until further notice.

A US court has granted Argentina a temporary reprieve in its legal battle over the 2012 expropriation of state energy firm YPF (NYSE:YPF). The Second US Circuit Court of Appeals in New York delayed the transfer of a majority stake in the company for one week, giving Argentina time to present and consider arguments from both sides.

The court's decision comes after Argentina requested a temporary administrative stay on the enforcement of a turnover order issued on June 30, which would have forced Argentina to transfer 51% of YPF shares to Burford Capital (BUR) litigation fund and other claimants. The court granted the stay to allow for an "orderly presentation and consideration" of arguments from both sides, with Burford (BUR) and Argentina required to file their responses by July 17 and July 22, respectively.

A three-judge panel will assess the submissions and decide whether to keep the order on hold for the duration of Argentina's broader appeal. If the court rejects Argentina's request, the turnover order would come back into effect immediately.

Argentina's President Milei has warned that giving up its controlling stake in YPF could destabilize the country's economy. The legal battle over YPF's shares has been ongoing since the company was nationalized in 2012, with Argentina facing multiple court rulings and appeals.

The outcome of the case will have significant implications for Argentina's economy and energy security, as YPF is the country's largest oil producer and operator of the Vaca Muerta shale formation. The case also tests the limits of sovereign immunity in international law and the strategic value of energy assets in emerging economies.

References:
[1] https://seekingalpha.com/news/4467678-us-court-delays-handover-of-ypf-company-shares-for-a-week
[2] https://english.elpais.com/economy-and-business/2025-07-15/us-court-gives-argentina-three-more-days-to-surrender-its-ypf-shares.html
[3] https://www.ainvest.com/news/argentina-ypf-dispute-litmus-test-sovereign-immunity-emerging-market-risks-2507/