An American appellate court has put a pause on implementing a $16 billion ruling that would require Argentina to surrender its majority ownership, in the energy behemoth YPF.
The 2nd U.S Circuit Court of Appeals has approved a postponement on Tuesday for hedge funds Petersen Energia and Eton Park Capital Management until July 17 to submit their arguments, against Argentinas plea for a delay as they appeal the case; Argentina is required to reply by July 22.
The argument revolves around Argentinas takeover of YPF in 2012 by acquiring a 51% interest from Repsol without offering a tender to minority stakeholders such, as Petersen and Eton Park.The claimants have the support of legal financier Burford Capital who might be entitled to a share of any compensation provided.
The government of Argentina asserts that relinquishing authority over YPF could disrupt its economy and weaken its energy plan with a deadline of July 14 looming until U.S District Judge Loretta Preska granted an extension, for the appeals courts examination.
The legal dispute might change how countries engage with investors as the situation underscores the dangers associated with seizing property and safeguarding investors under foreign laws.
