2023-07-28 22:41:15
The trial in New York of the Burford Capital Capital fund once morest Argentina to which it claims 16,000 million dollars to nationalize the oil company YPF in 2012 he was ready this Friday to pass sentence.
The second day of the YPF trial ended in a scandal in New York
After three days of hearings, the investigating judge in the case Loretta Preska, of the court for the southern district of New York, will have to determine in the next few days the amount of compensation that Argentina will have to pay.
At stake are the scales for the compensation calculation and whether or not interest should be applied -the plaintiffs ask for between 6 and 8%-, and the date that must be taken into account for that calculation.
The prosecution claims that it was April 16, 2012 when the Argentine government decreed the nationalization. Argentina maintains that it should be May 7 when Congress approved the nationalization law and the price of YPF’s shares had plummeted.
Between 9.490 million and 16.050 million dollars, the request of the plaintiff
The amount varies between 16,050 million dollars and 9,490 million, depending on whether one date or another is taken and 8% interest is applied. Argentina is willing to pay 4,920 million, according to its calculations, which does not include interest because it refutes them.
“The difference is huge. That is why this trial is so important.” reminded the judge of the lawyer from Argentina, Robert Giuffra, in the final arguments in which he asked him to take into consideration the “difficult situation” of the country, affected by a severe drought and high inflation, and that “might affect many people” in the country.
He The case dates back to 2012 when Argentina nationalized the YPF oil company, controlled by the Spanish group Repsol. Two years later, heThe Spanish was compensated with 5,000 million dollars to settle the dispute.
Not so other minority shareholders such as the Petersen Group and Eton Park Capital (25.4% of the capital of YPF), what in 2015 filed a lawsuit, alleging that the country had not submitted a takeover bid as required by law.
Kicillof’s phrase that can now be expensive
At that time, the Argentine Minister of Economy, Axel Kicillof, assured that this requirement would have been a “trap” and only a “moron” would expect Argentina and YPF to comply with it.
The buffet Burford Capital, specialized in buying litigation, paid 16.6 million dollars to these two companies to finance lawsuits.
in june In 2019, the United States Supreme Court rejected Argentina’s request for the dispute to be settled in Argentine courtsand last March, Judge Preska determined that Argentina is responsible for the losses suffered by the nationalization of the oil company.
The value of shares in publicly traded Burford have skyrocketed.
“Kicillof knew very well what he was doing, which is why Argentina must pay for it,” concluded the prosecution’s lawyer Paul Clement in the closing arguments.
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