New setback for Argentina in the United States in the lawsuit for the nationalization of YPF – 19/04/2019

Argentina has suffered another setback in the United States in the matter of nationalization of YPF. The request, for a amount that would be about 3 billion US dollars, was established in 2015 by law firm Burford, after purchasing the rights to plead Eskenazi family, shareholder of the oil company at the time of nationalization.

The trial has two open instances. On the one hand, it is up to the US Supreme Court that it is up to decide whether the record is to be accepted or not to determine whether the claim should remain under the jurisdiction of the United States. United or if it must be settled in Argentina.

On the other hand, at the request of Argentina and YPF, the Court of Appeal seized the High Court I had outstanding the unfavorable decision for the country that dictated last November and allowed the trial court to proceed with the trial and with a final sentence.

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The Argentine side had asked that this unfavorable decision do not stay firm until they submit the application for review to the Supreme Court, which local lawyers have done on time.

But on Thursday, the Court of Appeal ruled that it was already the time to lift the suspension and that the trial will continue its way in the first instance to the final judgment, beyond what the Supreme Court will decide later. The information was published by Sebastián Maril, director of FinGuru and an expert who follows step by step the lawsuits against Argentina abroad.

"Argentina and the YPF have asked the Court of Appeal to await the decision of the Supreme Court, which would take another one or two years, but Thursday, the Court of The appeal decided to get rid of the matter and left it to return to the southern district of Judge Loretta Preska, "said Maril.

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According to the specialist, the decision "speed up case resolution in one or two years and opens the doors to another request – from Eton Park, which is also waiting for a decision of the Supreme Court – continues.

Faced with this situation, Argentine lawyers filed Thursday before the Court of Appeal an application for interim relief asking to be reconsidered after leaving the verdict in force, said Maril.

At the end of March, Treasury Lawyer, Bernardo Saravia Frías, went to the United States to present the case to the State Department. In January the Supreme Court decided to seek the advice of Donald Trump's administration on the case.

Now, US officials must send their opinion to the highest court, which could delay between 2 and 5 additional months. "If the court does not accept the case, which would be known between June and September, it means that the lawsuit will continue in the US If you agree to re-examine the case, the decision final will not be taken until June 2020, "says Maril.

The specialist believes that before continuing the case, Judge Preska will certainly accept Argentina's request to wait for the Appellate Court to badess the request for urgent re-examination of the case. the final stop. "I doubt that I reconsider," he says.

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The trial

Burford pleads against Argentina because it has bought back the companies in which the Eskenazi owned 25% of YPF's shares. The complaint is based on the fact that the Argentine state has not complied with the statute of the oil company, which states that whoever buys 51% must launch an offer for the whole of society, what Argentina did not do. They allege that the rights of minority shareholders have been violated. The country expropriated, in 2012, under the administration of Cristina Kirchner, 51% of YPF.

Argentina's proposal is that it is not a commercial decision, but that the transaction was carried out within the framework of the law on sovereign immunity and that, therefore, must be pleaded in the Argentine courts.