Burford Capital Share Discussion Threads

[extrader] 03/5/2024 20:56

Seb's latest

.."Busy month for Argentina in international courts:

1. May 8: YPF responds to the request to deliver evidence to prove to Judge Preska that it is not the Alter Ego of Argentina.

2. May 15: Province of Buenos Aires defines payment of judgment for USD 35 million to creditor Glacial Capital.

3. May 16: Argentina presents a document opposing the transfer of YPF shares to the beneficiaries of the ruling.

4. May 21: Oral presentation begins in London court for the appeal of the PBI Coupon ruling.

5. May 30: Beneficiaries of the YPF ruling present a document supporting the transfer of the shares into the hands of the State and the provinces...

GLA

[somerset lad] 03/5/2024 16:33

Away from Argentina ... the Competition Appeal Tribunal has published its judgment granting a Collective Proceedings Order in the Spottiswoode case, which is funded by BUR: see hxxps://www.catribunal.org.uk/sites/cat/files/2024-05/14407722%20Clare%20Mary%20Joan%20Spottiswoode%20CBE%20v%20Nexans%20France%20S.A.S.%20%26%20Others%20-%20Judgment%20%28Collective%20Proceedings%20Order%29%20%203%20May%202024.pdf

Details of BUR's funding arrangement (investment up to £30.175m + up to a further £10m; potential payout to BUR to recoup the sums invested + 3 x the sum invested) is at paras 23-25, followed by discussion of compliance of the funding arrangement with the Supreme Court's PACCAR judgment.

For anyone not following, Spottiswoode is a class action against members of the power cable cartel brought on behalf of people who paid for domestic consumption of electricity supplied via the distribution network in Great Britain on or after 1 April 2001 and claim to have paid inflated power prices. (There is a separate case called London Array that has been brought by an operator of a wind farm that bought power cables directly form the cartel: see today's Judgment at para 38.)

[375uv] 02/5/2024 21:32

Things are getting interesting in Argentina.

[extrader] 02/5/2024 19:34

Seb continues his lobbying/consultancy :

..I have said more than once that respecting court times and waiting for a new ruling to be published is not a responsible legal strategy. History is not on our side.

Let's summarize what happened recently:

1. Request for transfer of ownership of YPF shares.
2. Request for recognition of the ruling in Ireland.
3. Request for information to prove that YPF and Argentina are "the same" and thus go after the oil company's assets.
4. The IMF warns the country that these trials may complicate the return to international credit markets.

I understand that the YPF issue is toxic for the Government, but kicking the ball is not an appropriate legal strategy.

I am not asking to pay at this time. Just pick up the phone before it gets even more complicated.

also posts newspaper headlines ( La Nacion) pointing the finger at Christina Kirchner.

Meanwhile - also la Nacion - Argentina's Central Bank has lowered interest rates .."In 50 days, the BRCA applied four rate cuts, from 100% p.a. to 80% last March, then from 80% to 70% 21 days ago, and from 70% to 60% last week..."; and

."Argentina today officially began the process of joining the Organisation for Economic Co-operation and Development (OECD), when Foreign Minister Diana Mondino received from the Secretary General, Mathias Cormann, the "road map" that the country must follow before becoming a full member of the organisation, which brings together the 38 most prosperous countries on the planet, which account for 75 per cent of investment and 60 per cent of global trade..."

[three black crows] 02/5/2024 18:05

TNT99,Now that is a question I have been pondering for some time.Let's see how Burford get to work negotiating this major claim. I would like to think that 2025 is our year to celebrate. I can't see this case being settled this year

[tnt99] 02/5/2024 14:58

When is burford shares going to be 30 pounds must be their true value If they get the Argi money or take over The oil company's assets

[futurekid] 01/5/2024 22:53

Kirchner & Co may soon decide gathering the cronies together and supporting a settle agreement is better than a public disgrace

FK

[three black crows] 01/5/2024 19:20

Yes full payment please

[extrader] 01/5/2024 13:51

And hat-tip to Rider75, continuing the 'aviation' theme

..In case of PDVSA, the fact, that the VZ government, then the oppositon politicians financed many official cost through the company, made it possible to the american judge to male the decision on this " alter ego " thing, then initiaze the auction of CITGO. (And this we experienced even 20 fold rise of one of the creditors, who sueffered an expropriation in the past. And instead of persuing a small fraction of their claim, there is chance to full payment ).

Kirchner's use of YPF jets - referenced in the submission - whether for personal or 'Government' business could prove to be their undoing.

GLA

[extrader] 01/5/2024 08:06

Seb tweets




(1) Bloomberg
@business
Javier Milei notches a congressional win after Argentina’s lower house approves the privatization of some public companies and other key chapters of his omnibus reform bill

.....

(2) Seb : YPF judgment creditors initiate discovery of the oil & gas company's assets. They request Judge Preska to order YPF to produce documents that will prove that Argentina and YPF are the same (Alter Ego) so they can start seeking and attaching assets.

[tnt99] 01/5/2024 07:49

Looks like we are going into the oil and gas business

[planit2] 30/4/2024 07:58

I am seeing more positive reporting and figures out of Argentina now.

It's a the press seem to need to take a stance on whether they will vilify or promote a politician rather than just report facts.

In any case the figures are looking in the right direction and the opposition has failed so far to stop the policies going through. I think they are past the most uncertain period as it will be increasingly difficult for Milei's critics to say things aren't working.

[extrader] 29/4/2024 20:18

Ashmore latest

Argentina
Economic Activity Index -3.2% yoy in February vs. -6.0% consensus and -4.0% prior.
Economic Activity Index -0.2% mom in February vs. -0.8% mom prior.
Budget Balance ARS 625.0bn in March vs. ARS 1232.5bn prior.
Consumer Confidence Index 37.2 in April vs. 36.7 prior.

GLA

[extrader] 28/4/2024 13:47

Seb's latest

It is important that Argentina pays attention to the lawsuits it has abroad. The pressure is already beginning to be felt. The IMF warned the country in February in a report that is public. Several beneficiaries have already initiated seizure processes and, in certain cases, have obtained approval to take possession of these assets. In June/July, we will know if Judge Loretta Preska authorizes the transfer of YPF shares to the beneficiaries of the ruling. Yesterday, an Irish court received a request to recognize the ruling in order to begin the search for assets.

I understand that President Milei has other priorities and I applaud that he is taking care of them. But Argentina has ignored these trials for a long time and they have always been complicated.

The beneficiaries of the YPF case are the country's second most important creditors after the IMF. I am not asking the Government to pay, just to start by putting these trials on the radar to fully understand their details and the consequences for all of us if we continue to ignore them.

The below-the-line comments are worth a read.

GLA and ATB

[lazg] 24/4/2024 02:26

Burford Capital seeks Argentina’s YPF stake to pay US$16-billion award
Burford Capital asks US judge to grant it controlling 51% stake in YPF as part of its effort to collect on a US$16-billion court judegment.



Burford Capital asked a US judge to give it control of Argentine state oil company YPF SA as part of its effort to collect on a US$16-billion court judgement against the Latin American country.


In a motion filed Monday in New York, Burford asked US District Judge Loretta Preska to grant it the 51 percent stake in YPF currently held by Argentina’s federal and provincial governments. Preska is also the judge who in September issued the judgement that Burford is now trying to collect.

Burford had sought to keep its filings secret, saying that news of its collection effort could impede efforts to resolve the issue. It would also attract attention in Argentina “because the motion calls into question the republic’s continued majority ownership and control over YPF,” Burford said in a court filing. Argentina opposed.

Preska declined to seal the filings. Neither Burford nor the Argentine government responded to emails seeking comment.


Even if Preska orders that Argentina’s YPF shares be handed to Burford, it’s unclear how the litigation funding firm would enforce that decision. Argentina has in the past fought foreign judgments, but those disputes have also harmed the country’s ability to raise overseas capital.

Burford is asking the judge to order Argentina to transfer its class D shares in YPF through a custodial account at Bank of New York Mellon. According to the filing, the shares are not covered by a US law that shields certain assets of foreign governments, and Argentina has used them to back debt securities sold to US investors.

But Burford acknowledged it has “a long road ahead” to collect the full judgement, “given Argentina’s many years of structuring its assets to avoid enforcement.” It said a court order requiring Argentina to hand over the shares could be the only way to force the nation to engage in negotiations over the judgement.


A 51 percent stake in YPF is currently worth about US$4 billion, roughly a quarter of the judgement.

The case in which Burford is seeking to collect stems from the Argentine government’s seizure of YPF in 2012. Preska found that re-nationalisation violated YPF by-laws requiring the company to make a tender offer to all shareholders.

Argentina is appealing the ruling but failed to post security for the judgment during the appeal. That led Preska to rule in January that the judgement — the biggest ever ordered by the federal court in Manhattan — was subject to immediate collection, before the appeal is decided.


Burford, which paid US$16.6 million to acquire the interests of two groups that held YPF shares at the time, stands to make some US$6.2 billion if the full judgement is paid.

The case is Argentine Republic v. Petersen Energia Inversora SAU, 23-7370, 2nd US Circuit Court of Appeals (Manhattan).

by Bob Van Voris & Jonathan Gilbert, Bloomberg

[this tea tastes of chicken] 23/4/2024 08:28

Thanks mighunter

[chester9] 22/4/2024 21:45

It's on Top News text on Bloomberg TV.

[mighunter] 22/4/2024 20:29

From Bloomberg: "Burford had sought to keep its filings secret, saying that news of its collection effort could impede efforts to resolve the issue."

[extrader] 22/4/2024 20:04

Ashmore's latest, for additional macro-economic context :

Argentina: President Javier Milei requested Argentina join NATO as a global partner. It is unclear if that would have any relevant implications beyond bringing Argentina closer to the US. Congress started debating a new fiscal reform bill that lowers the income tax threshold, establishes a tax amnesty that creates a scheme to regularise undeclared assets and cuts personal asset tax, amongst other changes.

In the meantime, Finance Minister Luis Caputo pledged to keep achieving a budget surplus, which kept Argentinian bonds well supported again last week. The trade balance was USD 2.1bn in March, above estimates of USD 1.2bn and USD 1.4bn prior. Exports rose to USD 6.4bn from USD 5.5bn. Imports rose to USD 4.3bn from USD 4.1bn.

'Steady as she goes...'
GLA

[extrader] 22/4/2024 19:39

I'd refer you back to the recent YPF results presentation and the rationale behind its 4 x 4 programme - the argument is that there's a roadmap for 4x growth in MCap over the next 4 years...

Key point : because of historic political mismanagement (and 'misalignment' of incentives), the planned disposal of 60 to 80% of its oil assets makes a 1 or 2% difference to their historic contribution to bottom line.

The old 80/20 rule in (graphic) action...

AIUI

[nigelpm] 22/4/2024 19:09

Obviously would go up without the interference of the Argentinian state.

[three black crows] 22/4/2024 18:59

YPF share price.You wouldn't have thought the share price would be heading north on the current news. Perhaps I'm missing something. It's up over 6% as I type.