In a significant legal development, US District Judge Loretta Preska has dealt a blow to Argentina by ruling that investors can start going after its assets to collect a $16.1 billion court judgment. This judgment pertains to Argentina’s 2012 takeover of oil company YPF SA. Previously, Argentina had been attempting to repel these collection efforts.
The judgment is the largest ever ordered by the federal court in Manhattan, and its potential impact on Argentina is severe. The South American nation is already struggling with economic difficulties, including surging inflation. Argentina has claimed that the judgment is nearly equivalent to one-fifth of its 2023 budget, and that making the payment would inflict severe hardship.
This ruling comes even as Argentina is in the process of appealing against Judge Preska’s decision from September. Now, however, the door has been opened for investors seeking recoupment of their losses from the 2012 takeover of YPF SA. Following this US court ruling, they can begin efforts to collect the $16.1 billion judgment by pursuing Argentina’s assets.
For more details and updates on this matter, you can read the full article from the original report by Bloomberg Law.