Argentina was ordered to pay at least $8.4 billion in damages and $7.6 billion in interest in a US lawsuit over the re-nationalization of state oil giant YPF SA in 2012.
US District Judge in Manhattan, Loretta Preska, ordered that the funds would be awarded to entities backed by Burford Capital, which obtained the right to pursue claims for $16.6 million in 2015.
Argentina has vowed to appeal the ruling, which is likely to delay payment by several months or even years but could also complicate its efforts to re-enter global debt markets.
“This case concerns the rights of former shareholders in an Argentine company, and under the company’s internal regulations, there is no right to resort to an American court,” the Argentine government said in a statement.
Burford Capital said that it would receive the largest share of the compensation value, which caused the company’s shares to rise by about 28% in American trading, recording the highest level since August 2019.
“I am overjoyed to see this amazing victory and the value it may bring to our shareholders once the case procedure is completed and the funds are recovered from Argentina,” Burford CEO Christopher Bogart said in a statement.
“The ruling is an important milestone for the business, and we continue to see momentum in our whole portfolio as well as continued demand for our shares and services,” he added.
