Argentina received a setback in US justice in the process for the expropriation of the YPF oil company. Judge Loretta Preska, of the Southern District Court of New York, it ruled in favor of the Burford Capital and Eton Park funds and against the country.
Both groups said that -upon the nationalization of 51% of the company in 2012- the country was expected to make a takeover bid for the entire company (as established by the statute) and not only on one side.
Buford had initiated the process against Argentina and YPF in 2015, on behalf of Petersen Energy bankruptcyas it had taken over the bankruptcy of that company, which was a shareholder in the oil company at the time of the expropriation.
Preska established it Argentina is responsibleBut accepted YPF’s request dismiss claims against you.
The judge also rejected the funds’ request to fix the damages Argentina must pay It is estimated between 7,000 and 18,000 million US dollars- and said the amount would have to be fixed in a retrial for damages.
“The (New York) Court finds that the plaintiffs were harmed by the Republic because they were entitled to receive a takeover bid that would have provided them with an compensated exit (from the company) but they did not,” the statement reads. judgment.
And it adds that plaintiffs have both the right to claim damages and the right to choose damages as their remedy instead of specific performance (i.e., for the country to actually bid for the entire YPF).
Also, he says that the adequate measure of this compensation is the price of the public offer of takeover that Argentina would have had to make if it had complied with the statutes
Charles Arterburn is a seasoned business journalist for News Rebeat, where he provides comprehensive coverage of the latest trends and developments in the world of finance and economics.