Burford Capital Share Discussion Threads

[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.

[extrader] 22/4/2024 18:19

Seb's latest :

YPF judgment creditors formally ask Judge Preska to compel Argentina to turnover all shares expropriated in 2012. The Republic will file its opposition motion on May 16 and the judge will not decide until the second week of June.

Accompanying filing extract suggests it's a straightforward issue....

Let's see !

[this tea tastes of chicken] 22/4/2024 08:25

Why did BUR want this to be under seal ?

[extrader] 22/4/2024 02:11

With this follow-on exchange :

Q :Sebastian, query: Is there no recursive incidence in the Court of Appeals? Isn't the question about the company's shares subordinated to the outcome of the appeal? Gcias


A: Judge Preska's ruling is a Final Judgment that can be appealed (as Argentina has done), but this ruling is also automatically enforceable unless Argentina deposits a guarantee to avoid enforcement. Argentina chose not to deposit this guarantee, which is why embargoes or similar ones began.

If the Court of Appeals rules in favor of La República and the beneficiaries of the ruling managed to get hold of some assets as collection of the judgment, then enforcement is suspended until the Supreme Court gives its opinion (if it reaches that instance).

The beneficiaries of the judgment will not have to return the seized assets(s) to Argentina until the Court issues its ruling.

In my opinion, it is a matter of negotiation. Not of seizure.

Popcorn at the ready.

[extrader] 22/4/2024 02:03

Sebastian MarilSebastian Maril
• 3rd+• 3rd+
Regional Director, US & Latin AmericaRegional Director, US & Latin America
3h • 3h •

Follow

YPF JUDGMENT CREDITORS ASK NEW YORK JUDGE TO COMPEL ARGENTINA TO TRANSFER OWNERSHIP OF THE OIL AND GAS COMPANY

YPF judgment creditors have petitioned Judge Loretta Preska of New York’s Southern District Court to authorize the transfer of ownership of all YPF shares expropriated by the Republic in 2012, including those allocated for the provinces. Originally filed on April 1, this request was kept under seal by the creditors, rendering it inaccessible to the public. Currently, Argentina holds a 51% stake in the oil and gas company, with 25% of this ownership designated for the oil-producing provinces. Recently, the Republic voiced opposition to the creditors' actions and urged Judge Preska to unseal the transfer of ownership motion. The New York judge sided with Argentina and YPF, who made a similar request.

Nevertheless, next month, Argentina intends to contest the creditors' motion to transfer ownership of YPF shares owned by the government. According to Title III, Chapter I, Article 10 of the YPF Expropriation Law, any transfer of the expropriated shares requires the approval of two-thirds of Congress. While it's improbable that the Republic will transfer ownership of the shares to the creditors, Wall Street is poised to play an active role in resolving this litigation, given that this development involves a NYSE-listed company and a sovereign nation with strong ties to the US, which may soon face contempt charges from a US court if it doesn’t comply with a likely turnover order.

In November, Judge Preska noted that shares owned by the Federal government, excluding those pledged to the provinces, could serve as collateral to prevent embargoes during the appeal. Since Argentina never pledged its shares, judgment creditors obtained clearance to enforce the 2023 judgment.

Plaintiffs will respond to the Republic's opposition to the transfer of ownership by June 1, after which Judge Preska will promptly rule on the motions....

'Things are getting serious....'
GLA and ATB

[jockthescot75] 19/4/2024 20:26

Exactly as I suggested at 26065.
Super interesting.

[somerset lad] 19/4/2024 20:08

Seb has posted.

I don't think BUR really wants to take delivery of the expropriated YPF shares. Owning shares in a company in a jurisdiction whose legislature is potentially very hostile to you is a recipe for value destruction. But the application does, very neatly, put ARG's feet to the fire.

I suspect BUR was quite happy with Judge Preska's order to publish. If BUR were unhappy they would presumably have asked the Judge to delay the publication date to give them time to consider and pursue a possible appeal. BUR may well have felt that they needed to assert confidentiality for consistency with other applications they may make in future, where they really do want to keep the detail under wraps (to avoid tipping off e.g. other creditors who might want to go after the same assets).

[jockthescot75] 19/4/2024 19:04

Sounds like we’re going to see what this content in the document is according to Seb.

[375uv] 19/4/2024 15:36

Interesting piece by Seb about YPF, Argentina and Burford.

WALL STREET SHOULD START ASKING ARGENTINA UNCOMFORTABLE QUESTIONS

hxxps://www.linkedin.com/posts/sebastianmaril_wall-street-should-start-asking-argentina-activity-7187039522562400256-gsOJ?utm_source=share&utm_medium=member_desktop

[rar100] 19/4/2024 09:29

Thanks all for your replies, I bought into BUR a few years ago - when it was vaunted to be a 'new asset class' and also almost a Robin Hood figure - giving 'poorer' people access to legal help/finance, where there was virtually none before.

It was a disrupter, I did pretty well the shares kept going north until MUDDY WATERS, and that was game over in one day, I sold. Since then it's been a roller coaster, it never has got it's reputation back from the attack.

The Argentina saga seems endless, so much potential but........

Over one year the share price has done very well but a shame it went so low in the first place, a traders dream perhaps (if one has the time/expertise in it's niche landscape)

GLA again and thanks

[galatea99] 18/4/2024 20:08

has this been posted previously, a research note from Focus Capital Managemwnt?

[syoun2] 17/4/2024 18:38

Hope there selling all the holdings & price being held back for a bit but great opportunity to buy. Unfortunately I’m already fully loaded

[extrader] 17/4/2024 16:20

Seb's latest

.."In February, the IMF warned Argentina that it needs to address legal issues related to recent court rulings if it wants to regain access to international credit..."

Extracts (which I can't copy) follow...and refer specifically to the YPF and GDP bond-linked cases..

GLA

[futurekid] 16/4/2024 21:41

rAr100 - over the last 12 months depending on when you bought it’s significantly up. Going forward the whole market does not yet have confidence in the mid term spreadsheet forecasts but sooner or later the penny:cent will drop!

[syoun2] 16/4/2024 21:37

That’s in reply to rar100