Faced with the continuity of the decision against the Argentine state, which dictates the New York judge Loretta Press for the expropriation of YPF, the government had two ways before two ways: one political and another legal and financial. The last reaction of President Havier Mailey, who yesterday again loaded against Axel Kicillof for the fact that he was an executing hand of this destructive decision, since now he shows a greater call to maximize the first path, it is clear if he looks at him from voters.
In addition, it would be reasonable to develop a more consistent strategy for the executive branch than just an appeal. Victory time is a valid option, but it will not solve the problem. And if the Milei administration intends that YPF is conducting a virtuous export process of gas and oil, this should be a risk that once their actions will be transferred to the unknown owner.
Javier Miley. (Source: Archive).
Since he took responsibility for this lawsuit, the strongest protective game that the government made is to get legal support to the White House. The US Department of Justice indicated to Judge New York that access to the Berford capital statement and the presentation of YPF actions were violated by the “sovereign immunity” of Argentina. Feet note: A short presentation was represented by the Biden administration. The judge fired him, and yesterday decided that the staff was delivering 51% of oil shares.
The legal world mentions that the presentations that are still deployed by treasury purchases (responsible for the implementation of protection) were insufficient. The 15 -day period for appeal is already working, and although there are no arguments, it is likely that investors who punished the price of action yesterday, certify them to make a visible play that demonstrates a more firm commitment. YPF is not part of the test, but this is certainly its main victim.
The compensation approved by Pressska is 16,000 million US dollars plus interest. To have a measurement, YPF today costs about 20,000 million US dollars. Burford Capital, a British legal study specialized in this type of claims, does not want to enter the oil industry. And he understands – in silence – that the failure of the press is also not effective by 100%. The state cannot deliver 51% of the shares (so as not to mention the fact that 25% belong to the provinces), without the approval of the congress, because the same law on expropriation granted.
And if he, as a new Berford controller, he must offer to buy actions that are on the market, because if he does not violate the company’s statute, which was what Kicillof did in 2012 and gave the process. Until now, no appeal (this will be the third), and there is no certainty that the US court, the last legal appeal, which Argentina accepts the case before payment.
The percentage taxi is not cheap: 2.5 million US dollars per day. The government still has time, because he has no guarantees that justice turns off the clock at some moment. Milei would be good to appoint a person responsible for the highest technical and political level to be responsible for listing options and measuring the costs and risks of each of them. On the one hand, there are lawyers who expect to agree on a bonus. On the other hand, the wealth of VACA Muerta.
