Burford purchased another lawsuit against Argentina for the nationalization of YPF

After celebrating the decision in his favor pronounced by the Southern District Court of New York in the lawsuit against Argentina for the partial nationalization of YPF vulture fund Burford Capital He took advantage today to make two other ads related to the subject.

On the one hand, he sold 3.75% of the rights he had acquired in this lawsuit that started the Petersen group of the Eskenazi family and in which yesterday he had a favorable decision in the American judicial system. The sale was completed for US $ 30 million – total demand is $ 3,000 million.

But the most important of the announcements is that this sale was to allow to finance the purchase of 70% of the business that Eton Park, who was the third largest shareholder in the flagship oil company raised against Argentina for the expropriation of YPF. In other words, Burford now has another lawsuit against Argentina.

The two announcements occur one day after the hearing of the US Court of Appeals of the Second Instance the same as previously the late Judge Thomas Griesa acted, by which it was determined that Eskenazi's request for the re-nationalization of YPF must continue its course in the North Country and not be transferred to Buenos Aires.

Burford devotes himself to "helping" the funds to plead in exchange for part of the claim a modality that relies on this type of litigation is costly, both in time and in resources.

Historically, Burford financially intervened in litigation related to similar claims filed by Eton Park, the third shareholder of YPF, which then held approximately 3% of YPF's capital.

While Eton Park is now dissolving, the vulture fund has agreed in June 2018 to badume a broader role, comparable to its action on Petersen's request, and has paid a advance of 21 million US dollars in exchange for right to receive an additional 70% of their YPF litigation income, less fees and fees.

As they explained, "in order to maintain Burford's cash exposure facing YPF's claims" is that they decided "to finance the payment to Eton Park by selling interests. additional "in his right on Petersen. "In conjunction with the closing of the Eton Park transaction, we sold 3.75% of our interest at an effective price of US $ 30 million, which implies an estimate of US $ 800 million for our right total Petersen original "they reported.

"While we are satisfied with this decision, it is important to note that this decision only deals with a preliminary jurisdictional issue and does not presage any particular result in the underlying litigation," they warned in a statement. . Similarly, the vulture fund has warned that "given the court's decision, Burford has not considered the impact of the court's decision on its investment appraisal process for the for the period ended June 30, 2018 and will consider its impact, if any, on the investment valuation process for the period ending December 31, 2018. We discussed our valuation process later. "