High Court asked to recognise €15.4bn judgment against Argentina

• Published date: 25 April 2024
• Author: Aodhan O'Faolain
• Publication title: Irish Times: Web Edition Articles (Dublin, Ireland)

The application to recognise the New York court's judgment in this jurisdiction has been made by two groups who were each minority shareholders in the Argentinian Energy Company YPF

The first group is the Spanish-registered Petersen Energia Inversora SAU and the related Peterson Energia SAU, which are both in liquidation.

The second group is Eton Park Capital Management LP and Eton Park Fund LP, which are registered in the US, and Eton Park Master Fund Ltd, which is registered in the Cayman Islands.

The two groups successfully sued the Argentinian State and YPF over the South American nation's renationalisation of the company in 2012.

YPF was privatised when 100 per cent of the firm's shares were sold through an IPO on the New York Stock Exchange in the early 1990s.

Between 2008 and 2011 the Peterson Group acquired 25 per cent of the ownership of the company.

In and around the same period the Eton group acquired some 3 per cent of YPF.

The two groups claim that in 2012, following a vote of Argentina's congress, the state acquired 51 per cent of YPF from the then-majority shareholder Repsol, which is a Spanish entity.

The two minority shareholders said the Argentinian state failed to make a public offer for the other 49 per cent of its shares at a price prescribed in the original share offer.

This action, the groups claim, was in breach of the law and resulted in the two groups sustaining significant losses and damages.

The two groups brought an action before the New York courts seeking damages and prejudicial interest for breach of contract against both YPF and the Argentinian State which ran for several years.

The claims were denied and the actions opposed.

The courts found in their favour and awarded the Petersen Group some $14.38 billion while the Eton companies were awarded $1.71 billion.

The decisions have been appealed, but the awards are not the subject of a stay.

At the High Court on Thursday the two groups secured permission, ex parte, from Mr Justice Michael Twomey to apply...