Repsol sues Argentina over YPF in NY court and also takes the case to World Bank arbitration
Repsol YPF SA the large Spanish oil and gas company on Tuesday sued Argentina for seizing control of formerly state-owned energy company YPF SA, in which Repsol held a majority stake.
The lawsuit, filed in the US District Court in Manhattan, is part of Repsol's effort to recover 10.5 billion dollars from Argentina over the seizure in a case that could drag on in arbitration and the courts for years.
In the complaint, Repsol and the money manager Texas Yale Capital Corp, which holds YPF American depositary receipts, claimed that Argentina reneged on its promise to tender for Class D shares of YPF if it ever took back control of the company.
Argentine president Cristina Fernandez announced the planned seizure of a 51% stake in YPF from Repsol on April 16, contending that the Spanish company did not invest enough and allowed oil production and exploration to decline.
Argentine lawmakers approved the seizure earlier this month.
Repsol total stake prior to the seizure was 57%. YPF shares have fallen 50% this year, and 31% since the seizure was announced, causing losses for other investors.
“Argentina's failure to launch a tender offer despite having retaken control over YPF constitutes a breach of its contractual obligations to other shareholders” the complaint said.
Repsol and Texas Yale seek compensatory damages, a requirement that Argentina launch a tender offer, and other remedies.
Earlier Tuesday, Repsol said it had told President Cristina Fernandez of a dispute under the Treaty for Investment Promotion and Protection agreed between Spain and Argentina -- a necessary step for arbitration at the World Bank's International Centre for Settlement of Investment Disputes.
Six months must pass before ICSID will consider arbitration in any dispute, to allow negotiations between the two parties.
Repsol Chairman Antonio Brufau has said his company's claim would be based on an estimated 18 billion dollars total value for YPF.
Spanish government and European Union officials have said they will act against Argentina over the expropriation.
Analysts, however, have said the options are limited. They have noted that Argentina has ignored past ICSID fines and that the country's capacity to settle is unclear because it remains shut out of world capital markets. Argentina may also argue that the YPF seizure was in the public interest.
Even if Repsol were to prevail at the ICSID, lawyers familiar with similar cases said it was unlikely it could recover a payout. About one-fourth of global cases handled by the ICSID have been against Argentina.
“The ICSID takes years in its rulings, but we are talking about the most important case in its history” said one lawyer. “I wouldn't be surprised if there was interest in speeding up the process although it is going to be long and involved.”
In March, US President Barack Obama said he would suspend trade benefits for Argentina because it had failed to pay more than 300 million dollars in compensation awards in two disputes with US companies.
The case is Repsol YPF SA et al v. Argentina, U.S. District Court, Southern District of New York, No. 12-03877.
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Suck it up Argenweener its all for you.
Should have read the contract again with a skilled highly paid team of lawyers before making any desicion on nationalising YPF. Eh what that's....you did! hahahahahaha
That one single statment speaks volumes...........
for the ck-gang only exist courts that rule in favour of the gang.
so it´s only one more fundraising for the lawyer hordes.
Please read “We are a corrupt bunch of money-grabbing, tossers who are doing this so we can line our own pockets. To hell with the ”people“ anyway they won't find out until it's too late, suckers!!!”
No guts like all Argies.
I am sure you are taking the pixx out of KFC .The only person who could be daft enough to give her any credibility is a pimply 13 year old male goth with the hots for her.
Now you know how it works shall we be seeing you in the ICJ regarding Falklands sovereignty?
;-)
This is what happens when you behave like a 5 year old, KFC. She can bury the case in her desk and scream that it's not happening, BUT IT IS.
Where do you live?
That is a real question btw.
Her and her team's mismanagement is painful to watch.
With luck the rest of the country will wise up and kick her and her cronies out.
it was all their fault .
With surgery like that she is the goth version of Joan Rivers - but she is seriously not funny!
Well, she looks like something out of Tim Burton's “A Corpse Bride” or “A Nightmare before Christmas”.
The thought of British_Kirchnerist “Thrashing it out in the sweaty darkness” over a picture of her makes me feel ill........ unless of course he's into that, in which case... That's just tacky
they have removed the sandwitch she was eating ??
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