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By Jonathan Stempel
NEW YORK (Reuters) -A U.S. appeals court docket on Friday granted Argentina’s request to placed on short-term maintain a decide’s order that it flip over its 51% stake in oil and fuel firm YPF to partially fulfill a $16.1 billion judgment received by two buyers.
In a quick order, the 2nd U.S. Circuit Courtroom of Appeals in Manhattan stayed U.S. District Decide Loretta Preska’s June 30 turnover order whereas Argentina appeals.
Friday’s order supplies a reprieve for Argentine President Javier Milei’s authorities, which warned of irreparable hurt and financial instability if it gave up its stake in YPF, the nation’s largest vitality firm.
Argentina is individually interesting the $16.1 billion judgment, which Preska awarded in September 2023 to Petersen Energia Inversora and Eton Park Capital Administration.
The buyers are represented by litigation funder Burford Capital, which might share of their damages.
Legal professionals for Petersen and Eton Park didn’t instantly reply to requests for remark.
Friday’s order didn’t present causes for the keep, which ought to final not less than a number of months. Argentina’s subsequent authorized submitting associated to YPF is due on September 25, court docket information present.
The dispute stemmed from Argentina’s 2012 choice to grab the YPF stake from Spain’s Repsol with out making a young provide to minority shareholders.
Argentina had argued that the YPF shares have been immune from turnover underneath the federal Overseas Sovereign Immunities Act.
The U.S. authorities sided with Argentina, saying a decision of the dispute shouldn’t be rushed and doubtlessly intervene with relations between the international locations.
Legal professionals for the buyers countered {that a} business exercise exception to immunity, along with Argentina’s “a few years” of evasion, justified a turnover.
In her June 30 order, Preska mentioned Argentina’s management over the YPF shares triggered the exception, and the nation couldn’t merely invoke its personal legal guidelines to forestall a turnover.
A spokesperson for the Argentine authorities mentioned the nation welcomed Friday’s order, and assured the $16.1 billion damages award would even be overturned.
(Reporting by Jonathan Stempel in New York; Enhancing by Leslie Adler, Edmund Klamann and Marguerita Choy)
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