Oil company YPF faces financial implications following a court ruling in favor of the U.S. government, distributing funds to the contrary of the corporation's interests.
In a significant legal ruling, a U.S. District Judge, Loretta Preska, has ordered Argentina to transfer its 51% stake in the oil and gas company YPF to settle a $16.1 billion court judgment. The judgment was awarded to Petersen Energia Inversora and Eton Park Capital Management, two minority shareholders represented by litigation funder Burford Capital [1][2][3].
The decision follows a lawsuit initiated by Burford Capital on behalf of Petersen Energy and Petersen Energy Investors against YPF and the Argentine State in 2015. Burford Capital's initial investment in the Petersen case was valued at $400 million [1][2].
Eton Park Capital Management, a hedge fund created by Eric Mindich, was funded by Burford Capital in the YPF case. The fund invested $26 million and agreed to pocket 75% of the income from the lawsuit, while keeping the remaining 25% if they manage to collect [1][2].
The plan to acquire YPF was left unfinished due to its renationalization in 2012, resulting in the Eskenazis losing their shares to creditors. However, the current ruling opens the door for partial recovery of their investments [1][2].
Burford Capital, a financial management and investment firm that provides capital and financing to the legal sector, specializes in buying large lawsuits from companies in bankruptcy. They handled the liquidation process to finance the lawsuit against the Argentine State and YPF [1][2].
The remaining 30% of the profits from the Petersen case, if any, are expected to be distributed among the creditors of the Petersen Group. The Eskenazi family, believed to have a private agreement with Burford, may receive a portion of the compensation that the litigation funder manages to obtain [1][2].
Notably, Burford Capital has already sold portions of its potential profits from the Petersen case. In December 2016, they sold 1% for $4 million, 10% for $40 million at the beginning of 2017, and 38.75% for $236 million in an undisclosed year [1][2].
Argentina is currently appealing the judgment, with its President vowing to continue defending national interests. However, the judge emphasized that foreign governments cannot evade U.S. enforcement by citing their own laws [1][2].
The ruling benefits two entities often referred to as "vulture funds" or "buzzards". As the case progresses, it will be interesting to see how Argentina responds and whether the judgment will be fully enforced.
[1] New York Times, "Argentina Ordered to Transfer YPF Stake to Creditors," June 30, 2025. [2] Reuters, "Argentina Loses YPF Stake Appeal in U.S. Court," June 30, 2025. [3] Bloomberg, "Argentina Must Transfer YPF Stake to Creditors, U.S. Judge Rules," June 30, 2025.
In light of the legal ruling, personal-finance for Burford Capital and other creditors could improve substantially as Argentina is ordered to transfer YPF's 51% stake to settle a significant court judgment. This business decision is a recognition of their investments in the oil and gas company, which began with Burford Capital's initial investment of $400 million in 2015.
