2023-09-16 19:26:18
The Government of Argentina could have presented a proposal through which it would be willing to pay 15,100 million dollars (about 14,150 million euros at the exchange rate) for the sentence of 16,000 million dollars (about 15,000 million euros) in damages. to which the country was sentenced in a trial in the United States for the 2012 renationalization of the state oil company YPF by Cristina Fernández de Kircher.
Of the total amount that Argentina must pay, more than 11,000 million would correspond to the Burford fund, financier of the lawsuit, and the rest would be received by Repsol (with about 1,500 million) and some companies of the Argentine Eskenazi family, close to President Néstor Kirchner and who entered in the shareholding at the request of the Kirchner couple. The Spanish companies of the Eskenazi came to hold a quarter of the shares of YPF without putting up their own capital, since they bought their package with loans from Credit Suisse and Repsol itself with the oil company’s shares as collateral.
Initially, the Burford firm had declared that the Argentine Government was refusing to pay, after warning that it was going to appeal the decision of the Manhattan District Court. However, Argentina has finally recognized the ruling, although it will now have to negotiate with the other party.
These funds claimed that, at the time of the nationalization of YPF, in 2012, Argentina should have made an acquisition offer for the entire company (as established by the statute) and not just for a part.
“The Court considers that the plaintiffs were harmed by Argentina, because they had the right to receive a public acquisition offer that would have provided them with a compensated exit but did not do so,” the ruling stated.
This sentence, known last Friday, September 8, is a hard blow at a time when the financial situation of the Latin American country is increasingly precarious, with high inflation and great monetary instability.
Judge Loretta Preska, of the Southern District of New York, published last Friday the final ruling that condemns the Argentine State to pay 16,000 million dollars (14,998 million euros) to the Burford Capital fund for the expropriation of YPF.
The conviction forces Argentina to pay the highest possible compensation to Burford Capital, which promoted the lawsuit after acquiring the litigation rights of two companies incorporated in Spain, Petersen Energía Inversora and Petersen Energía, formerly belonging to the Argentine group Petersen, of the Eskenazi family. , which had 25% of shares in YPF-, which was joined by Eton Park – an American fund that had 2.9% of YPF.
Judge Preska, in her ruling this Friday, details the amount that Argentina must pay to the owners of Petersen’s rights (14,385 million dollars for the Burford fund) and Eton Park (1,714 million dollars) as “breakup.” of contract”.
However, it rejects “all other claims” of both companies against the Argentine State, based on alleged crimes such as anticipatory rupture and breach of the good faith commitment and fair agreement. Preska also orders that with today’s ruling it be considered that “the case is closed.”
The expropriation of YPF occurred during the Government of Cristina Fernández (2007-2015) and with the current governor of Buenos Aires, Axel Kicillof, then vice minister of Economy.
On April 16, 2012, the Argentine Government declared 51% of the oil company YPF, controlled by the Spanish company Repsol, of public utility and subject to expropriation; A few days later, on May 3, the Congress of the South American country approved the YPF expropriation law.
In her ruling last Friday, the judge agreed with Burford, because she considered that Argentina took control on April 16 (and not on May 7, when the expropriation law was published); the interest rate that must be applied is 8% (and not 0%, as Argentina intended) and that the P/E ratio, a fundamental component of the formula that determines the value that the country must pay for the shares, must be the higher and beneficial for the plaintiff.
While Argentina estimated that it would have to pay close to $5 billion, the prosecution’s claim of $16 billion will prevail.
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