Burford Capital is pushing for control of Argentina’s state oil company, YPF SA, in a bid to collect on a US$16-billion court judgment against Argentina. In a filing on Monday in New York, Burford urged US District Judge Loretta Preska to grant it the 51 percent stake in YPF currently held by Argentina’s federal and provincial governments. This move comes after Preska issued the judgment last September. Despite Burford’s attempt to keep its filings confidential, Preska declined to seal them.
Even if Preska rules in favor of Burford, enforcing the decision remains uncertain given Argentina’s history of resisting foreign judgments. Burford is seeking an order for Argentina to transfer its YPF shares through a custodial account at Bank of New York Mellon. However, this action may be the only means to compel Argentina into negotiating the judgment.
The case stems from Argentina’s seizure of YPF in 2012, deemed a violation of YPF by-laws by Preska. Argentina is appealing the ruling but failed to post security for the judgment during the appeal, prompting Preska to rule in January for immediate collection.
Burford, having acquired interests in YPF shares, could stand to gain significantly if the full judgment is paid. The case is being heard in the 2nd US Circuit Court of Appeals under the title Argentine Republic v. Petersen Energia Inversora SAU.
