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.

[Alexander Of Assyria]

1. One can sell litigation rights? And then transfer them to a favorite jurisdiction? Who knew?

Capitalism has its own rules…and they all favor capitalists.

No wonder so many nations are turning their backs on the West and looking East.

Argentine State, Argentine oil company, Argentine oil…American judge??

[peppertree]

2. Well said - ESPECIALLY in Burford's case, who paid $18 million and now wants $18 BILLION

Burford, moreover, is domiciled in Guernsey - which as you know, is infamous for its financial lawlessness.

It's a favored home for both launderers (including drugs and rackets) and tax cheats.

But there's little reason to be hopeful - given the vulture fund precedent.

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 almost $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, Alexander. All the Best.

[Farmer-Rick]

3. So the citizen of Argentina are on the hook to pay

Buford Capital, not the corporation that won the suit, $7 Billion.

Were the citizens of Argentina allowed to vote on these decisions made by foreign judges, corporations and financiers? Was a voting referendum done to get their consent about the nationalization? It all sounds like one giant scam by lazy filthy rich capitalist to bilk an entire nation.

No one asked the citizens, but they get to pay.

[peppertree]

4. Exactly. But given the kangaroo courts in Wall Street, it would've surprised me to see anything else

You may recall the vulture fund case in 2013-14.

In that case, 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 quickly stocked up on another $200 million - and then cashed in for over $2 billion (an 1,160% return).

There's another, smaller case before the same judge (GHW Bush appointee Preska) now - and one in UK courts brought by (you guessed it) three Caymans laundries and one domiciled in Delaware.

None look hopeful - but unlike in 2013/14, Argentina has no global credit markets access they can hold hostage (Macri did that in 2018 already).

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

Thanks as always for your time and insights, Rick. All the Best.