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? |
Will be a 30% deduction for me with iWeb, even with a w8ben. I would definitely be against a special dividend. If you hold this in a SIPP and complete the w8ben you maybe immune to this withholding tax |
Almost certainly no special dividend, hTnt99. Burford Capital first have to win the appeal, which many think likely, but then must COLLECT. Collection may be in every conceivable manner, but it will not be in cash or soon.
Why no special dividend?
From 1st Jan 2025 Burford Capital will be a US domestic issuing company. Thereafter their agent’s must deduct US withholding tax (15% in the UK, but variable) from dividends to foreign shareholders. This can be offset only against taxpayer’s unearned income, in jurisdictions including the UK.
In addition there always remains the general point that dividends are expensive for companies who pay agents to calculate and distribute dividends in different currencies and tax rates.
Further, dividends are never allowable against company tax, unlike the alternatives: eg interest on bonds, debentures, loans, accruals etc.
The future?
If “collection221; in whatever form it takes and assuming no cash, is achieved, Burford Capital may float their YPF asset separately as a non trading investment. |
Will there be a special dividend if they start collecting the money owed to them from the court win |
According to Seb, our favorite judge likes Fridays:
"We are waiting for Judge Preska's ruling about two motions to turn over YPF shares owned by the Republic. Throughout the duration of the case, the judge has issued 6 major rulings. Do you notice a pattern with Judge Preska and her rulings?"
1. Friday Sep-9-2016 | Opinion & Order.
2. Friday Aug-30-2019 | Memorandum of Law.
3. Friday Feb-7-2020 | Memorandum of Law.
4. Friday Mar-31-2023 | Opinion & Order.
5. Friday Sep-8-2023 | Findings of Facts & Conclusions of Law
6. Friday Sep-15-2023 | Final Judgment |
Ashmore latest :
Argentina: The consumer price index (CPI) of inflation fell to 4% month-on-month, an annualised rate of 60% year-on-year, marking the lowest level of the year. This rate is four times lower than the inflation rate over the previous 12 months. Core inflation also slowed to 3.8% month-on-month.
GLA |
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