The Government filed an appeal before the Second Circuit Court of New York against Judge Loretta Preska's decision, which ordered the transfer of YPF's shareholding control to litigating funds.
The official strategy aims to exhaust all judicial avenues and avoid any type of negotiation.
Direct appeal to the Court before the ruling on the suspension
On July 9, Argentina formally filed its appeal before the Second Circuit Court of Appeals in New York, in the context of the case it faces over the expropriation of YPF carried out in 2012. The filing was made by the law firm Cleary Gottlieb Steen & Hamilton LLP, which represents the Argentine State.
This appeal was filed before Judge Loretta Preska ruled on the request for a stay of the decision that ordered the transfer of Class D shares —51% of the state oil company's capital— to Burford Capital and Eton Park, the funds that benefited from the litigation.
El Gobierno apeló el fallo que la obligaba a entregar el 51% de YPF a Burford
According to analyst Sebastián Maril, CEO of Latin Advisors, the Government's decision to appeal directly is not illegal, but it departs from the conventional strategy: "The logical thing would have been to wait for the judge's decision on the stay, and from there move forward. But Argentina anticipated."
The case and the risk of contempt
The central lawsuit originated from the way Cristina Kirchner's government expropriated YPF in 2012. In September 2023, Preska ruled against Argentina, with a judgment that obliges it to pay USD 16 billion to the litigating funds, which had acquired legal rights from former shareholders of the oil company.
Meanwhile, alongside the process of appealing the economic ruling, Burford promoted the direct enforcement of the judgment, claiming the shares that the State holds in YPF. If Preska were to require guarantees as a condition for granting the stay, and Argentina fails to comply with that requirement before next Monday, the country could be held in contempt.
That scenario would seriously affect the country's international image, precisely at a time when it seeks to attract investment, reopen access to credit, and consolidate a path toward economic stabilization.
El Gobierno apeló el fallo que la obligaba a entregar el 51% de YPF a Burford
Government strategy and internal warnings
Casa Rosada asserts that no type of out-of-court settlement will be negotiated. "The strategy is 100% judicial. We're going to exhaust all possible avenues. We're not going to give up our right to defense," sources close to the President told Infobae.
The Government also believes that there are "domestic vultures" who may be collaborating with international litigants for political or economic interests. In this regard, they point to statements by Buenos Aires Governor Axel Kicillof, former officials, financial analysts, and law firms that, according to this view, may be favoring possible destabilization to benefit from operations linked to Vaca Muerta.
As part of the strategy, Argentina will also seek for the United States Government to issue a formal opinion before the court, as occurred in 2023 during Joe Biden's administration.
