I like it they are having a bumper year, from presentations. I agree that it might indicate deployments are slowing, always prudent better to pay down debt in good years. Governments would do well to follow. |
In other news, YPF ADR that traded @ $10 a year ago and $ 24 last month is currently @ $ 32.
You can see why Argentina might be loth to see YPF brought into the settlement equation.
Makes the alter ego decision weightier, though
AFAICS
GLA |
May i ask, what typically would have pushed BUR to do this? Excess cash and so they reduce debt and coupon payments on existing debts? I guess they have to consider deployments too and balance that, but i guess that the recent good results allow them to do both |
$44m August 25 Bonds bought and will be cancelled. Leaving $135m Y25 bonds |
Milei is the first world leader to meet Trump since re-election. Buy BUR as part of the Trump trade.. |
Seb Bainbridge Fund files a letter to Judge Preska asking not to consider the Department of Justice Statement of Interest in support of the Republic.Bainbridge says that: "The Government's emphasis on "international comity" is particularly disconcerting. We are dealing with a foreign nation that has absolutely refused to enforce the judgments reached by the courts of the United States, and has otherwise made the enforcement of U.S. judgments difficult. This Court owes no comity to a nation that has consistently refused to recognize comity for the past quarter-century." |
Still waiting for Muddy waters and co’s predictions to come to fruition , pity they are not being pursued for outputting dodgy info for an alternative agenda . |
From online FT
Javier Milei eyes Donald Trump friendship to win IMF loan for Argentina
Libertarian leader seeks IMF loan while positioning himself as US president-elect̵7;s ally in culture war against the ‘woke’ left
GLA |
More from Seb Judge Loretta Preska grants YPF judgment creditors permission to file a response to the Department of Justice's opposition to the turnover motions. Creditors must submit their response by November 15. |
From Seb"Argentina and Titan Consortium reach an agreement on the terms and conditions of the judgment in the Aerolineas Argentinas expropriation case. Argentina will be required to pay USD 389.5 million, including interest, which will accrue from the judgment date at a variable rate currently set at 5.11%."It can and will be done on assumption all appeals by Argentina fail. Holding value by Burford off memory is 1.5b dollars. They hope for significantly more we will see. Sadly next year hopefully not next year in January. |
I’m Assuming market reaction to results is part due to the imminent decision on YFF ego. Even though we know governments position we still need decision from the judge. Thoughts? |
Thanks 357UV.Judge Preska wants to move things on.She must remain scrupulously neutral of course,but I can't help feeling she would like to attach the YPF shares as she attempted to direct Argentina when it came to the decision around the posting of the bond,which Argentina declined.( As one of the options put forward)
On balance,I think she will side with the defendants and acquiesce to the DOJ.I hope I'm wrong.
Looking ahead I think Burford may have to offer more carrot than stick.I would not be surprised that,after the appeal is lost by the defendants (the most likely outcome)that the incentive to get Argentina into real negotiations would be the offer to waive further post- judgement interest for,say,three/six months while a negotiated settlement is worked out,overseen by a mediator.Failure to agree within time frame would result in foregone interest added. |
* Judge Loretta Preska grants YPF judgment creditors permission to file a response to the Department of Justice’s opposition to the turnover motions. Creditors must submit their response by November 15. * |
Great results even without YPF case |
Note to self : GGAL ADR is currently @ $54 and YPF @ $30, both from around $ 10 a bare 12 months ago.
That has to help sentiment towards Argentina generally...
GLA |
Reasonably good results, a sniff of settlement with Argentina and a rather churlish share price reaction to a bond component - bought some more. |
 Burford Capital Open to Argentine Bonds for $16 Billion Judgment
Kevin Simauchi and Jonathan Gilbert
Fri, November 8, 2024 at 9:08 AM EST 3 min read
(Bloomberg) -- Investors who won a $16 billion judgment against Argentina over its nationalization of energy firm YPF SA more than a decade ago are open to receiving payment in bonds instead of cash, according to people familiar with the matter.
Burford Capital, a litigation funder that’s the biggest stakeholder in the case, would accept sovereign bonds or other marketable securities, considering the Argentine central bank’s depleted foreign reserves, the people noted, asking not to be identified because the discussions are private. It acquired rights to the lawsuit in 2015 for $16.6 million from former YPF shareholders and stands to make at least $6.2 billion if the full judgment is paid.
The fund’s more flexible stance on repayment could mark an olive branch in a dispute that’s dragged on Argentina’s attempts to emerge from decades of financial debacles. Talks between Burford representatives and government officials have gone nowhere despite meetings in recent weeks, the people said. The lack of meaningful progress under President Javier Milei, who took office last December, comes more than a year since a US federal judge ruled in Burford’s favor.
Argentina’s Economy Ministry and Milei’s chief spokesperson didn’t respond to requests for comment. Milei remarked several months ago on the possibility of selling a “perpetual bond” to pay down the YPF case, but no concrete strategy emerged. The central bank has more liabilities than assets, an impediment to cash payments known as net negative reserves.
Wall Street has warmed up to Argentine dollar bonds as Milei implements strict austerity measures while he passed business-friendly reforms through Congress. Sovereign notes, which were deep in distressed territory a year ago, are now the best performers in emerging markets so far in 2024.
But Argentina’s history of default on sovereign debt would lend a note of irony to Burford receiving them as payment. In the case most frequently compared to the YPF one, Paul Singer’s Elliott Management sued the Argentine government over its 2001 default and waged a 15-year court fight to collect on sovereign debt it held. Argentina settled with Singer and other investors for $4.7 billion in 2016.
The dispute comes against the backdrop of another severe recession in Argentina marked by 200% inflation and Milei’s bid to shore up the nation’s reputation abroad. On top of the YPF case, the libertarian must also manage a $44 billion program with the International Monetary Fund as well as a $1.5 billion case in the UK and payments to the nation’s current bondholders due in January.
The lawsuit in US courts stems from Argentina’s seizure of YPF in 2012. US District Judge Loretta Preska ruled in 2023 that the nationalization of YPF violated the company’s bylaws that required the energy firm to make a tender offer to all shareholders.
Argentina is appealing Preska’s collection judgment, but failed to post security during the appeal. That led Preska to rule in January that the judgment — the biggest ever ordered by the federal court in Manhattan — was subject to immediate collection, before the appeal is decided.
The most recent wrinkle in the case came Wednesday when the US Department of Justice sent Preska a letter asking she not allow Burford and others to seize YPF’s US-listed shares. The Justice Department said allowing a private litigant to seize foreign assets on US soil poses risks to US foreign policy interests and reciprocity abroad.
The stakes are high for Argentina not just in this case, but also as a litmus test in Milei’s bid to attract foreign investment. The president’s new reforms meant to bring in large foreign investments specifically allow companies to resolve potential legal disputes outside Argentina should a project go awry there.
The case is Petersen Energia Inversora SAU v. Argentine Republic, 15-cv-02739, US District Court, Southern District of New York (Manhattan).
GLA |
Bloomberg reporting a BUR insider saying we'd consider Argentine bonds in settlement |
And this one is nice big and liquid so you can easily trade it |
Can still not believe the share price action today - i went from being about 9k down to 8k upAIM is def still the wild west |
It'll be a year or two for that! |
Harvesting olives? Yer not in Birmingham then redders? |
Very happy with the results presentation.I felt investors were given greater insight into the three ' fronts' on which Burford is progressing the YPF matter. Acknowledging the business/ political links in Argentina was illuminating.Burford is positioning itself for the negotiation table. |
Ah thanks Ozz. Incredible but when the share price drops like it did this morning i totally appreciate some panic selling I was heavily buying in all the way down this am but when we hit 800p I had to stop watching the screen lol |
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