Argentina Ordered to Pay $16.1 Billion to Companies in YPF Nationalization Case

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Argentina has been ordered by a US judge to pay a total of $16.1 billion in compensation to two companies involved in the 2012 nationalization of YPF, the country’s leading oil company. The ruling by federal judge Loretta Preska expands on a previous judgment in favor of Petersen Energia and Eton Park Capital, who were minority shareholders and did not receive compensation for their shares. Argentina has been instructed to pay $7.5 billion in damages and $6.85 billion in interest to Petersen Energia, and around $1.7 billion to Eton Park Capital. The case was brought to US courts as YPF shares are traded on the New York Stock Exchange.

Argentina’s nationalization of YPF involved the expropriation of 51 percent of the company’s shares, which were partially controlled by Spanish firm Repsol. Repsol was later compensated with $5 billion, but other minority shareholders, including Petersen Energia and Eton Park Capital, were left uncompensated. In 2015, the two companies filed a lawsuit claiming that Argentina had not followed the proper procedures for a takeover bid as required by law.

Argentina, currently facing significant economic and political crises with annual inflation exceeding 120 percent, has stated that it will appeal the ruling within 30 days. In her judgment, Preska dismissed all other claims by the plaintiffs and against YPF SA.

This latest decision further complicates Argentina’s ongoing challenges as it grapples with its troubled economy and attempts to find stability. The country will have to evaluate its options and consider the implications of the ruling on its ongoing economic recovery efforts.

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Frequently Asked Questions (FAQs) Related to the Above News

Which companies are being compensated by Argentina?

Petersen Energia and Eton Park Capital are the two companies that have been ordered by the US judge to be compensated by Argentina.

How much compensation is Argentina required to pay?

Argentina has been ordered to pay a total of $16.1 billion in compensation. This includes $7.5 billion in damages and $6.85 billion in interest to Petersen Energia, and approximately $1.7 billion to Eton Park Capital.

Why did these companies file a lawsuit against Argentina?

Petersen Energia and Eton Park Capital filed a lawsuit against Argentina in 2015, claiming that the country did not follow the proper procedures for a takeover bid as required by law when it nationalized YPF.

Has Argentina appealed the ruling?

Yes, Argentina has stated that it will appeal the ruling within 30 days.

What was the previous compensation given to Repsol?

Repsol, a Spanish firm that partially controlled YPF, was compensated with $5 billion for the expropriation of their shares.

Are there any other claims dismissed by the judge?

Yes, Judge Loretta Preska dismissed all other claims by the plaintiffs and against YPF SA in her judgment.

How are YPF shares and the New York Stock Exchange connected to this case?

The case was brought to US courts because YPF shares are traded on the New York Stock Exchange.

What impact does this ruling have on Argentina's current economic situation?

This ruling further complicates Argentina's ongoing challenges as it grapples with its troubled economy and attempts to find stability. The country will have to evaluate its options and consider the implications of the ruling on its ongoing economic recovery efforts.

Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.

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