Categories: World

Published the final decision that obliges Argentina to pay 16 billion million for the YPF case

Judge Loretta Preska, from the Southern District of New York, published this Friday the final sentence that condemns the Argentine state pay 16 billion dollars to the Burford Capital fund for the expropriation of YPFsentence which the Argentine government promised to appeal.

That sentence of Friday, September 8th, resulted in the harshest sentence for Argentina: it demanded that it pay the highest possible compensation to the Burford Capitalwhich promoted the action after acquiring the litigation rights of two companies incorporated in Spain, Petersen Energía Inversora and Petersen Energía, previously belonging to the Argentine group Petersen, which held 25% of the shares in YPF-, which was joined by Eton Park – American fund that had 2.9% of YPF.

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Judge Preska, in her decision this Friday, details the amount that Argentina must pay Petersen ($14.385 million) and Eton Park ($1.714 million) as a “breach of contract”.

However, it rejects “all other claims” from both companies against the Argentine statebased on alleged crimes such as anticipatory breach and violation of the commitment of good faith and fair dealing.

Preska also orders that today’s sentence be considered that “the case is closed”.

The expropriation of YPF It occurred during the government of Cristina Fernández (2007-2015) and with the current governor of Buenos Aires, Axel Kicillof, then deputy minister of Economy.

On April 16, 2012, the Argentine Government declared 51% of the oil company to be a public utility and subject to expropriation. YPF, controlled by the Spanish company Repsol; A few days later, on May 3, the South American country’s Congress approved the expropriation law of YPF.

In last Friday’s decision, the judge agreed with Burford, because she considered that Argentina took control on April 16th (and not on May 7th, when the expropriations law was published); the interest rate that must be applied is 8% (and not 0%, as Argentina intended) and that the P/L ratio, a fundamental component of the formula that determines the value that the country must pay for the shares, must be superior and beneficial to the plaintiff.

While Argentina estimated that he would have to pay close to 5,000 million dollars, the prosecution’s claim of 16,000 million will prevail.

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Source: Elcomercio