New York Appeals Court Overturns $16.1 Billion YPF Ruling Against Argentina

Overview

• The Second Circuit in New York, which ruled Friday, threw out U.S. District Judge Loretta Preska’s September 2023 judgment against Argentina.
• The appellate panel said Preska misinterpreted Argentine law and the YPF statute that investors used to claim a mandatory buyout.
• The dispute traces to Argentina’s 2012 seizure of 51% of YPF, after which minority holders Petersen Energía and Eton Park sued in 2015, alleging the state skipped a required tender offer to other shareholders.
• The reversal removes a bill that officials said could reach about $18 billion with interest and that would have strained reserves reported at roughly $43.5 billion.
• The plaintiffs, funded by Burford Capital, can still ask the U.S. Supreme Court to review the case, and Burford’s U.S. shares fell as much as 54% Friday.