This piece originally appeared in Spanish on Chequeado.

Key takeaways:

• A New York appeals court has suspended Judge Loretta Preska’s order for Argentina to hand over 51% of YPF shares to pay a compensation ruling in the lawsuit over the company’s re-nationalization.
• The dispute dates back to 2012, when Argentina re-nationalized YPF by taking over the 51% stake previously owned by Spanish oil company Repsol. 
• The re-nationalization and the suspension of dividend payments led to the bankruptcy of two companies in the Argentine Petersen Group, which held a 25% stake in YPF. A hedge fund bought the trial rights from those firms and filed suit against Argentina.

The Second Circuit Court of Appeals has temporarily blocked the enforcement of New York Second Circuit Judge Preska’s order requiring Argentina to hand over the 51% stake in YPF to satisfy the US$16.1 billion compensation she previously awarded.

Preska’s original ruling required Argentina to hand over YPF’s Class D shares held by the state (representing 51% of the company) as compensation in the case led by litigation fund Burford Capital.

The lawsuit stems from Burford Capital’s purchase of litigation rights following the bankruptcy of two Petersen Group firms, which controlled 25% of YPF before the re-nationalization.

How did this case turn into a ruling against Argentina?

September 24, 1992: YPF is privatized
During President Carlos Menem’s administration, Congress passed Law No. 24.145 declaring YPF subject to privatization. The company’s capital was split into shares: 51% remained in state hands, 39% went to the provinces, and 10% to company employees.

June 22, 1999: Repsol acquires YPF
In January 1999, Spanish oil company Repsol acquired 15% of YPF. On April 30, it launched a public tender offer for the remaining shares. On June 22, the Argentine government approved the sale by decree, granting Repsol control over 99% of the company.

December 21, 2007: The Eskenazi family enters YPF
The Petersen Group, led by Argentine businessman Enrique Eskenazi, signed an agreement on December 21, 2007, with Repsol YPF to acquire a 25% stake through Petersen Energía Inversora and Petersen Energía, two firms incorporated in Spain, at the request of banks financing the deal.

The acquisition occurred in two stages: the first in 2008, when Petersen bought 14.9%, and the second in 2011, with an additional 10.1%. 

To finance the purchase, Petersen secured loans from banks including Credit Suisse, BNP Paribas, Goldman Sachs, and Banco Itaú. Repsol itself lent approximately US$1 billion. The agreement included a dividend distribution scheme intended to allow the Eskenazi family to repay the loans with those funds.

May 4, 2012: YPF is re-nationalized
Under President Cristina Fernández de Kirchner, Congress passed a law declaring 51% of YPF’s shares of public utility and subject to expropriation, with the goal of regaining control of the company. At that point, Repsol held 57%, having sold 25% to Petersen and more thereafter.

The operation was finalized in 2014 when Repsol’s board accepted the government’s US$5 billion offer in compensation for the expropriation.

July 2012: Petersen companies declare bankruptcy
After the government took control of YPF, it suspended dividend payments, financially harming Petersen companies, which depended on those funds to service their acquisition loans.

The firms eventually filed for bankruptcy in Madrid’s Commercial Court No. 3, which appointed a trustee and auctioned off the right to litigate.

Spokespersons for the Petersen Group explained that the re-nationalization “changed the conditions under which the group had invested and was repaying its loans. Unable to meet their obligations, many shares were taken over by creditor banks. A significant amount of debt remained unpaid, leading the firms to file for bankruptcy in Madrid.”

April 2015: The lawsuit against Argentina begins
Burford Capital acquired the litigation rights during the bankruptcy process and filed a lawsuit against Argentina in April 2015 in New York, seeking compensation.

The legal argument was that the Argentine state violated Article 7 of YPF’s bylaws, which stipulates that anyone acquiring more than 15% of the company must make the same offer to all shareholders — a step Argentina allegedly skipped during re-nationalization.

March 31, 2023: Judge sides with Burford Capital
On March 31, 2023, Preska ruled in favor of the plaintiffs, stating that Argentina “breached the contract” by re-nationalizing YPF without offering compensation to all shareholders. However, she excluded YPF itself from liability.

September 2023: US$16.1 billion in damages awarded
On September 8, 2023, Judge Preska ruled that Argentina effectively took control of YPF in April 2012, adopting Burford Capital’s interest calculations. Then, on September 15, she closed the litigation by ordering the government to pay US$16.1 billion in compensation for the re-nationalization of YPF.

June 30, 2025: Preska orders transfer of YPF shares
Preska instructed Argentina to transfer the 51% stake in YPF held by the state to fulfill the compensation ruling. President Javier Milei vowed to appeal the decision through all available legal avenues “to defend national interests.”

July 1, 2025: Argentina seeks suspension of ruling
The Argentine government filed a motion in Preska’s court requesting the suspension of the order mandating the transfer of YPF shares.

July 14, 2025: Judge denies suspension request
Judge Preska denied Argentina’s request, keeping the order in effect and requiring the country to proceed with the share transfer.

July 15, 2025: Appeals court halts share transfer order
The U.S. Second Circuit Court of Appeals in New York provisionally suspended Preska’s order, temporarily sparing Argentina from having to transfer its 51% stake in YPF.