Helpful. Thanks |
I think that this DOJ intervention is being overinterpreted. The US has laws protecting other nations sovereign assets (embassy buildings etc) from legal seizure. Burford contends that Argentina's YPF shares are a commercial asset not sovereign and thus up for grabs. The DOJ probably wants to ensure that a ruling by Judge Preska doesn't pierce the sovereign protection afforded to foreign governments. This would clearly be highly detrimental to US interests.
The DOJ doesn't act as an arm of the Dept of State pursuing foreign policy objectives.
'The mission of the Department of Justice is to uphold the rule of law, to keep our country safe, and to protect civil rights.' |
So, by Nov 6 the US government may file a statement of interest in the case. I wonder what the interest will be? Feels like a big move so must have been confident the turnover motion would be granted and that must be problematic.
One comment in response to Sebs post suggested it’s not in the interest of the US for its courts to be seizing foreign government assets… and for the precedent to be created. I guess it would be poor diplomacy, reduce US influence if attractiveness of US as a place to do business is diminished. Yet the DOJ will not and will not want to be seen to interfere with the courts/justice. Probably want this to go away and not have the statement of interest in the public domain.
Interesting. |
as i was saying all the time
...U.S. is likely to recommend ....
it is political in the end
i just hope we will be treated well and not sacrificed to any degree. it happens often unfortunately |
The US stepping in to "suggest using a mediator" would be a good step forward, as I suspect they would only do that after informal confirmation from Argentina they are willing to settle. |
Extrader,most interesting, thank you. |
Seb's assessment :
.."My view on this matter: The U.S. is likely to recommend that Judge Preska refrain from ordering the transfer of YPF shares to the judgment beneficiaries, taking into account the relationship between two allied nations. However, I also believe that the U.S. fully understands that a friendly sovereign nation (Argentina) violated local capital market laws.
For this reason, I wouldn’t be surprised if they also suggest that Judge Loretta Preska appoint a Special Master (mediator) to help both parties resolve the dispute..."
Seb talking his (negotiation, carajo!) book...
;->
GLA |
Or is played...
Preceded by
The US Government asks Judge Loretta Preska NOT to publish her decision on the delivery of YPF shares to the beneficiaries of the ruling. The US Department of Justice asks that an opinion be submitted by November 6, the day after the presidential elections.
And followed by lots of BTL comments and Trump emojis...
FWLIW
GLA |
Just in 10 mins ago
Sebastian Maril
@SebastianMaril
🔴The US Department of Justice writes to inform the Court that the United States of America’s potential participation in the Turnover Motion related to the YPF Expropriation Case. The United States expects that it will be in a position to inform the Court of its potential participation in this matter, and to file its Statement of Interest should it be authorized to do so, no later than November 6, 2024, the day after the US elections.
Preska plays a blinder...
GLA |
Let me put it this way...if Mr. Soler (a fanatic admirer of Cristina Fernandez Kirchner and Axel Kicillof) is right, then the Alter Ego discovery, ordered by Judge Preska months ago, falls apart. Burford cannot use only two low level public officials to prove the Alter Ego status of four Argy companies, including YPF. Preska only allowed Argentina to provide further info on the four most important officials named by Burford. Seb is right, Lady Preska ordered the discovery on these individuals, but allowed Argentina to present further evidence to convince the judge to reverse her order. It won't fly. |
SP behaves strangely off the bat. Best to look at the spread to see likely true price rather than the actual displayed price. No idea why it does it |
Any newsflow to justify today’s 5% jump? |
Seb again pleads with Milei...
If there is a government capable of setting an example by respecting the Rule of Law, it is this one. However, it continues to defend the mistakes made by previous governments.
Today, Argentina asked that the case for the expropriation of Aerolíneas Argentinas be closed and that nothing be paid, despite receiving numerous rulings against it from the ICSID and the US courts.
The same thing happens with YPF and the PBI Coupons, among others.
I applaud many of the changes made by President Milei. But he should be better advised in the trials we have open abroad.
Kicking the ball is not a legal strategy, but an excuse for not having one.
GLA |
This is the sort of banana republic stuff Milei has to contend with...
..There are few places in all of Argentina as poor as La Rioja, a sleepy, desolate province carved out of the red-clay highlands that form the country’s northwestern border with Chile.
And it is here, in La Rioja, that the financial toll of President Javier Milei’s shock economic therapy — a high-stakes bid to tame chronic inflation — can best be observed. When Milei slashed the monthly cash transfers from the federal government to the provinces, La Rioja went broke. In February, it fell into default. And soon the local economy had sunk into a deep recession...
La Rioja is the province that defaulted on a bond issued to finance a solar farm, sold the solar farm to a third party and used the proceeds elsewhere....
GLA |
Seb's latest
On Friday, all parties will present their final arguments in the YPF Expropriation Case appeal. A few days later, the Second Circuit Court of Appeals will announce the date of the hearing where the three judges will face Argentina, YPF, and judgment creditors for the first (and likely last) time. I don’t expect a ruling until mid-2025.
Other fish to fry/lines of attack to pursue in the meantime...
GLA |
 Thank you so much galatea99, and perhaps this could be discussed here on Advfn? It has been much talked about, particularly in the global judiciary, ever since a litigation funder’s (LCM) success fee was first approved in Australia some three decades ago.
Prima facile it sounds a good idea. However should not both parties be allowed freely to decide what commercial arrangements they mutually agree upon?
There again, success fees of over 300% are rare, and may not be known until after judgement is given. If the claim fails, or is settled by negotiation, the fees, costs, time, damages and risk will normally be privileged from disclosure.
Rosenblatt lawyers(RBG) was almost brought to its knees by its litigation funding forays. Further litigation funding is still not approved by all courts globally, and will the proposal increase or reduce its use?
My guess, for what it’s worth, is that success fees may possibly be capped in the EU, but this will have little affect on established players like Burford Capital. |
It's time for Milei to call Seb. |
Ashmore latest
Argentina
Exports have seen significant growth, with fuel and energy exports rising by 42%, agricultural manufacturing increasing by 29%, and primary products up by 20%. Petroleum exports have been particularly strong, with a 65% increase in 2024 year-to-date compared with the same period in 2023. On the other hand, imports have declined, with fuel imports down by 34%, capital goods by 24%, and intermediate goods by 17%.
GLA |
And this one from India:
Lenders to the bankrupt airline Go First have enlisted Burford Capital, a US-based litigation finance firm, to support their arbitration case against engine manufacturer Pratt & Whitney. The creditors committee has approved a first tranche payment of $20 million from Burford. Go First is claiming $1.5 billion in compensation at the Singapore Court of Arbitration, attributing its bankruptcy to Pratt & Whitney’s engine failures. Although litigation finance is common in parts of the world, ..
Read more at: |
How much time does JM need to spend re-arranging his personal investments? |
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