U.S. Appeals Court Stalls Argentina's YPF Stake Turnover

A U.S. appeals court has temporarily halted Argentina's mandatory turnover of its 51% stake in YPF, following a $16.1 billion judgment over a 2012 seizure by Argentina from Spain's Repsol. This move could destabilize Argentina's economy, leading to its appeal, which the government is hopeful to overturn.

A U.S. appeals court has granted Argentina's request for a temporary hold on a lower court's order. The order demanded Argentina relinquish its 51% stake in YPF, to partially satisfy a $16.1 billion judgment awarded to two investors.

The Manhattan-based 2nd U.S. Circuit Court of Appeals paused U.S. District Judge Loretta Preska's June 30 order as Argentina appeals the decision. Argentina argued that complying would cause irreparable damage and destabilize its economy, as YPF is a crucial national energy company.

The appeals court gave no explanation for its decision. Judge Preska had previously granted this judgment to Petersen Energia Inversora and Eton Park Capital Management over Argentina's 2012 nationalization of YPF from Spain's Repsol, lacking a tender offer to minority shareholders. Argentina remains optimistic about overturning the judgment in the appeal process.

(With inputs from agencies.)