New York federal judge, Loretta Preska, will decide this Monday whether Argentina will be able to suspend the transfer of 51% of YPF's shares while the appeal against the ruling that requires Argentina to hand over that share package to the litigating funds Burford and Eton Park is processed.
The decision is crucial for the national government, which seeks to avoid the immediate enforcement of the ruling issued in September 2023, which establishes compensation exceeding 17 billion dollars. Preska's decision comes in a context of intense judicial and financial pressure.
The Argentine request and the risk of losing control of YPF
Argentina filed the formal appeal last week before the Second Circuit Court and requested a “stay”, that is, the temporary suspension of the enforcement of the judgment. This measure seeks to prevent the State from losing control over YPF during the judicial process.
According to the Executive's legal strategy, transferring the shares now would mean “irreparable harm,” since the beneficiary funds could immediately sell the shares, preventing a possible reversal of the ruling.
Legal arguments: sovereign immunity and Argentine laws
The Argentine defense argues that Preska's court order violates the Foreign Sovereign Immunities Act (FSIA) and represents an improper exercise of extraterritoriality. In addition, they emphasize that the 2012 expropriation law requires a special majority in Congress to transfer the state's share package in YPF, which did not occur.
For the ruling party, complying with the ruling without exhausting judicial remedies would be a violation of national sovereignty, especially amid negotiations over external debt and fiscal adjustment.
