Background on the Dispute
A U.S. appeals court has temporarily suspended an order requiring Argentina to transfer its 51% stake in the oil company YPF to partially comply with a $16,100 million judgment.
Parties Involved
The U.S. Court of Appeals for the Second Circuit in Manhattan granted Petersen Energy Investor and Eton Park Capital Management, the judgment winners, until July 17 to oppose Argentina’s request for a prolonged suspension while the country appeals the transfer.
Timeline and Next Steps
- Argentina’s Response: Argentina has until July 22 to respond, and the matter will be reviewed by the “next available panel of three judges,” according to the appeals court.
- Judge’s Decision: Federal District Judge Loretta Preska in Manhattan agreed to delay execution until Argentina could seek protection from the appeals court, pushing the deadline to July 14.
Cause of the Dispute
The dispute originated from Argentina’s 2012 expropriation of Repsol’s YPF stake without making a public acquisition offer to Petersen and Eton Park, who were minority shareholders.
Financial Interests
Petersen and Eton Park are represented by litigation financing firm Burford Capital, which anticipates receiving 35% and 73%, respectively, of the compensation from Petersen and Eton Park.
Argentina’s Concerns
Argentina warned that transferring its majority stake in YPF, the country’s largest energy company, could destabilize its economy.
Key Questions and Answers
- Who are the main parties involved? The primary parties are Argentina, Petersen Energy Investor, Eton Park Capital Management, and Repsol.
- What is the nature of the dispute? The dispute stems from Argentina’s 2012 expropriation of Repsol’s YPF stake without offering a public acquisition to Petersen and Eton Park, who were minority shareholders.
- What is the amount of the judgment? The judgment amounts to $16,100 million.
- What is the role of Burford Capital? Burford Capital, a litigation financing firm, represents Petersen and Eton Park and expects to receive 35% and 73%, respectively, of the compensation.
- Why is Argentina concerned about transferring its stake in YPF? Argentina fears that ceding its majority share in YPF, the nation’s largest energy company, could negatively impact its economy.
