US Appeals Court Temporarily Halts Argentina 51% YPF Shares Transfer

A U.S. appeals court has temporarily halted the enforcement of a judge's order requiring Argentina to transfer its 51% stake in the oil company YPF to satisfy a $16.1 billion judgment. This pause allows Argentina to continue its legal appeals against the turnover order, which stems from the 2012 expropriation of YPF shares from Spain's Repsol without a tender offer to minority shareholders Petersen Energia Inversora and Eton Park Capital Management. The appeals court granted a temporary stay to facilitate orderly legal arguments, with opposition and response deadlines set for mid and late July, while a three-judge panel will decide on a longer suspension. U.S. District Judge Loretta Preska criticized Argentina for delaying compliance but allowed a short extension to July 17 for further legal proceedings. Argentina’s government, led by President Javier Milei, argues that relinquishing control of YPF could destabilize the national economy, which is grappling with inflation and debt challenges. Despite the legal uncertainty, YPF maintains a positive outlook from market analysts, with an 'Outperform' rating and potential upside in its stock price, underscoring the high stakes for investors and the Argentine economy.