#United States #New York #Argentina #Burford Capital #YPF Case

Burford Capital's Update on the YPF Matter

Burford Capital Limited has released an important update concerning the ongoing YPF case in response to numerous inquiries from investors. This update highlights the status and anticipated schedule of the YPF matter within both U.S. and international courts, providing clarity on the situation as the oral arguments for the Main Appeal approach.

Background on the YPF Case

In September 2023, the U.S. District Court for the Southern District of New York ruled in favor of the plaintiffs, Petersen and Eton Park, against the Republic of Argentina, leading to a judgment valued at around $16 billion. Of this amount, $8 billion accounts for pre-judgment interest that accrued over 11 years since Argentina failed to tender shares upon YPF's renationalization. However, the judgment did not extend to YPF as a separate defendant, leading to a multifaceted appeal process involving various parties.

Appeals and Court Proceedings

The Republic of Argentina has appealed the judgment to the U.S. Court of Appeals for the Second Circuit, while the plaintiffs have also contested the dismissal concerning YPF. The three appeals are collectively referred to as the "Main Appeal." After a comprehensive briefing, oral arguments are set for October 29, 2025, at 11:00 AM, New York City time. This highly publicized event will be broadcasted live, and recordings will be made available on the Second Circuit's official website.

The judging panel's composition will be disclosed shortly before the arguments, and the Second Circuit has allocated specific times for each side to present their case. Such a crucial juncture in the legal process prompts deep interest from various investors and stakeholders, highlighting the case's significance.

Timetable and Anticipated Outcomes

Following the oral arguments, the judges will deliberate and ultimately issue a ruling. There are no specific deadlines governing when the opinion will be released; it could take several months to a year. A dissatisfied party may seek a rehearing from the same judges or en banc review by all active judges within the Second Circuit. Furthermore, once the Second Circuit’s ruling is issued, there lies a 90-day limit to petition the U.S. Supreme Court for consideration.

The timeline for this process is inherently uncertain, as individual judges often operate at varying paces. Moreover, Argentina's history of seeking extensions or stalling can further complicate expected deadlines.

Enforcement and Discovery Efforts

As of January 2024, the judgment has been enforceable following Argentina's non-compliance with a stay order. The court continues to monitor discovery orders, with multiple hearings already underway concerning the enforcement efforts. The Republic has been mandated to produce numerous documents related to its dealings with YPF and its financial activities—this includes internal communications among government officials and other pertinent documentation.

Thus far, Argentina has produced a considerable volume of documents in response to these orders but continues to face scrutiny as plaintiffs issue third-party subpoenas to gather further evidence.

The Turnover Order

Additionally, plaintiffs are pursuing a turnover order that obligates Argentina to relinquish its YPF shares to satisfy the judgment. The District Court has reinforced the legality of such an order, emphasizing that providing the judgment creditor access to the assets is critical for enforcement. Nevertheless, Argentina has contested this order, and an appeal process is currently in motion.

International Recognition and Challenges

While Burford outlines its take on the YPF matter, a critical point is the necessity for international courts to recognize U.S. judgments for enforcement in foreign jurisdictions. Given that much of this ruling pertains to state sovereignty, Argentina poses jurisdictional objections that complicate its enforcement in other jurisdictions such as the UK, France, and Canada.

Conclusion

Executing the judgment against a sovereign state is fraught with complexities, and Burford acknowledges the risks associated with pursuing the YPF matter, including potential delays and litigation outcomes that might differ from expectations. This update refreshes investor awareness regarding the timelines and inherent unpredictability of the litigation process while emphasizing that all proceedings remain active and subject to further developments.

Burford Capital continues to operate within strict limits regarding public commentary due to legal privilege and client confidentiality, though it will strive to provide relevant updates as the case progresses. Investors are cautioned to consider the myriad factors that could sway the litigation's eventual outcome, as the pursuit of justice can involve extensive challenges and fluctuations.