MercoPress. South Atlantic News Agency

YPF lawsuit: Burford asks US court to hold Argentina in contempt

Although the ruling has been appealed, US judgments can be enforced pending appeal

Burford Capital, the main beneficiary of a US$16 billion first-instance ruling against Argentina over the 2012 expropriation of YPF, has asked federal judge Loretta Preska to hold the country in contempt and impose sanctions, citing alleged failures to comply with discovery orders.

Burford argues that Argentina did not produce emails and messages from current and former officials that it deems critical to enforcement efforts and to its claim that certain state entities operate as the government’s “alter ego.” The motion seeks civil sanctions, adverse inferences for missing evidence and coercive daily fines.

Argentina’s Treasury Solicitor’s Office said the country has complied with court orders, including the production of more than 113,000 pages and official testimony, and maintains it does not have “possession, custody or control” over officials’ personal accounts, which are protected under local law.

Although the ruling has been appealed, US judgments can be enforced pending appeal. Burford has pursued multiple avenues to collect, including efforts to attach assets and to establish an alter-ego theory. With interest, the award now exceeds US$18 billion.

Argentine outlets warned that a contempt finding by a New York court would complicate Buenos Aires’ push to regain market access at a sensitive moment for investor relations.