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Wonder if the electricity consumers/customers would get a few quid back?
I forgot to add that the permission to proceed was granted yesterday ..
https://www.marketscreener.com/news/latest/992-million-UK-lawsuit-against-European-power-cable-groups-gets-go-ahead-46623573/
Hat tip to SommersetLad
This is interesting as it gives an insight to a straight forward risk reward model by Burford. We will find your case but we want our investment back plus 3 x the value of the investment … simples
Section 23
The PCR entered into a financing agreement with BC Investments Ltd ("Burford"), a subsidiary of Burford Capital, dated 20 June 2018 (the "LFA").
The LFA has been varied from time to time to take account of developments in case law on litigation funding.
Pursuant to the LFA as varied, Burford has committed to provide up to an aggregate maximum amount of £30,715,000 to fund the costs of the Collective Proceedings, subject to the Collective Proceedings reaching various procedural stages. That figure includes £10 million of adverse costs cover in addition to after the event insurance cover which the PCR has obtained. In return for its investment in funding the action, if the Collective Proceedings are successful and an award of damages is made to the Class, Burford would be entitled to receive both repayment of all sums invested in the case pursuant to the LFA and an amount equal to three times the capital invested out of the damages and costs awarded to the Class. The payment structure is set out in Schedule 3 to the LFA as varied as follows:
1
"Allocation of Proceeds and Costs Awards
Its certainly getting v interesting… not ypf related but a good find by somersetlad on blue board ref another case.. I’ll start a new post
Hi BlueWiley,
This may also be BUR Boffin Boys-related...
Interesting article - referenced by Seb - in Clarin, the largest newspaper in Argentina and the second most circulated in the Spanish-speaking world.
https://www.clarin.com/opinion/coletazo-populista-vilo-ypf_0_R2UyhPN6Eg.html
"Another populist blow that has YPF on edge"
Goldman Sachs has an 18% stake in Clarin.
I wonder whether BUR is co-ordinating strategy with Wall Street ?
Clarin initially supported the Kirchners, then fell out with them over their attempts to muzzle the press.
Its editorial stance is centrist/right-wing and it subscribes to the politics of 'developmentalism', the notion that the performance of a nation's economy is the central source of legitimacy that a regime may claim. Per wiki " the notion of developmentalism has resurfaced more recently in the developed world – notably in the economic planks of 'unorthodox' policy makers such as Donald Trump and Bernie Sanders in the United States..."
The article re-caps the YPF saga and places the blame squarely on the Kirchners. In so doing, it appears to be supporting Milei in his battles with Congress, by seeking to neutralize opposition to his plans.
Article mentions the litigation threat to YPF's current ambitions
.."The execution, if it proceeds, could open a Pandora's box where the uncertainties about YPF's new shareholding structure would compromise the company's strategic plans and projects that are fundamental for the intensive development of Vaca Muerta..." and concludes
.."The current administration and management of YPF have made explicit plans to internationalise the oil market, intensify the exploitation of non-conventional resources and respect the company's management autonomy in a context of increased competition with other market players.
It would be regrettable if this whole process of investment to boost the economy were to be frustrated or slowed down by a ruling in a case in which YPF was the victim of populist mismanagement..."
Full article elsewhere.
GLA
ExTrader - I like this from your post on blue board.. The Burford Bofffin Boys earning there $ here !!
Kirchner's use of YPF jets - referenced in the submission - whether for personal or 'Government' business could prove to be their undoing.
interesting geopolitics in action :
- denmark sells 24 f-16s to argentina for $ 300m;
- denmark gifts 19 f-16s to ukraine;
- having decommissioned its entire f-16 fleet, denmark replaces them with f-35s;
- although the f-16s are 'obsolete' , they're good enough to have shot-down (apparently in dog-fights, not missiles, at least 2 chinese/****stani (?)sourced russian jets...)
- the uk has a veto on sales of jets (like the f-16)that use british martin-baker ejector seats, so must have ok'd the sale to argentina (perhaps after american arm-twisting);
- the west (esp us , who has spare parts sales)can give milei something for the local electorate...and incidentally thwart the alternative being tabled, buying from the chinese).
machiavelli or bismarck ?
gla and atb
In case of PDVSA, the fact, that the VZ government, then the oppositon politicians financed many official cost through the company, made it possible to the american judge to male the decision on this " alter ego " thing, then initiaze the auction of CITGO. (And this we experienced even 20 fold rise of one of the creditors, who sueffered an expropriation in the past. And instead of persuing a small fraction of their claim, there is chance to full payment ).
Seb tweets
https://twitter.com/business/status/1785333561458864203
(1) Bloomberg
@business
Javier Milei notches a congressional win after Argentina’s lower house approves the privatization of some public companies and other key chapters of his omnibus reform bill
.....
(2) Seb : YPF judgment creditors initiate discovery of the oil & gas company's assets. They request Judge Preska to order YPF to produce documents that will prove that Argentina and YPF are the same (Alter Ego) so they can start seeking and attaching assets.
The filing includes some examples of egregious = corrupt expenditure by the Kirchners, payroll padding, political advertising etc...
Ho hum
Another stride forward .. this may push the issue further up Mr Milei list of priorities as I don’t believe anyone including Burford wants to see 51% of YPF seized..
More precisely with its parent company. They would have this decision, YPF couldnt hold any asset abroad. I dont know whats the case with their payment methods and bank accounts. It definetaly would be a huge step.
As was the case with CITGO. Interesting.
https://twitter.com/SebastianMaril/status/1785487019822743975?t=2i8pjTmQkWhZhqZ45hIhUA&s=19
Ashmore latest
Argentina
Economic Activity Index -3.2% yoy in February vs. -6.0% consensus and -4.0% prior.
Economic Activity Index -0.2% mom in February vs. -0.8% mom prior.
Budget Balance ARS 625.0bn in March vs. ARS 1232.5bn prior.
Consumer Confidence Index 37.2 in April vs. 36.7 prior.
GLA
PJ interest rate has been dropping. From the original 5.41% to the current 5.18%. Still, as you said, nice number.
Approximate post judgment interests incurred by Argentina since final judgment issued in the YPF Expropriation Case: $545,084,808.
Now that's what you call interest.
1.52M 04/15/24
Bit dangerous, just playing the waves. As amount fairly low.
Focus Capital Advisors posted a very interesting summary of Burford on January 22nd in their 2023 year review.
Try searching "capital 2023 portfolio update focus"
Well Preska may say yes, as they are within their rights to request them to pay the dept, but they will never give up the shares and will be in contempt of a US Federal Court, this will soon go up the Argies priority list to settle.
Such an interesting stock to own! Especially when you follow a big public case like Petersen.
YPF SEC filing.
https://www.sec.gov/Archives/edgar/data/904851/000119312524106041/d818720d6k.htm
Hearing before Judge Preska rules? Appeal afterwards?
Ashmore's latest, for additional macro-economic context :
"...Argentina: President Javier Milei requested Argentina join NATO as a global partner. It is unclear if that would have any relevant implications beyond bringing Argentina closer to the US. Congress started debating a new fiscal reform bill that lowers the income tax threshold, establishes a tax amnesty that creates a scheme to regularise undeclared assets and cuts personal asset tax, amongst other changes.
In the meantime, Finance Minister Luis Caputo pledged to keep achieving a budget surplus, which kept Argentinian bonds well supported again last week. The trade balance was USD 2.1bn in March, above estimates of USD 1.2bn and USD 1.4bn prior. Exports rose to USD 6.4bn from USD 5.5bn. Imports rose to USD 4.3bn from USD 4.1bn....."
'Steady as she goes...'
GLA
And the bit I didn’t copy, ……….
The final 3 sentences is the shocker, and who we are dealing with
Finally, Maril indicated that it is a problem too complex to let it go without taking an active role on the part of the State: "the expropriation of YPF is the most complex thing that Argentina faces in history. It's 16 billion dollars for a mistake made not only by a government, but by an entire Congress that voted without reading what it was approving."
Taken from source :
https://noticiasyprotagonistas.com/actualidad/sebastian-maril-el-gobierno-argentino-deberia-prestarle-atencion-al-pedido-de-burford-capital/
Sebastián Maril: "The Argentine government should pay attention to Burford Capital's request"
April 22, 2024
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The international analyst referred to what was announced last Friday where Burford Capital asks for 51% of YPF's shares to be transferred to them in the face of the non-compliance of the National State.
Last Friday, Judge Loretta Preska lifted the secrecy of the summary in a presentation made by Burford Capital to transfer 51% of YPF's shares to her in the face of the non-compliance of the Argentine state.
This presentation had been made in April and is very important in the current political context, although it did not have the impact it should have. International analyst Sebastián Maril, spoke about it on 99.9 warning that "I am surprised that there was no noise about this except for the headlines on Friday afternoon and Saturday morning. It is necessary to pay attention to it because it is a snowball that continues to grow. Since Argentina doesn't pay attention to it, we don't sit down to negotiate; so they ask Judge Preska for what they are legally authorized to ask for. That is that 51% of YPF's shares are transferred to them because Argentina is not paying."
After this issue was made known, an explanation from the government on the subject should have been reached, but there was absolute silence: "next act, I expected some kind of comment from YPF or the government, but it did not happen. YPF is obliged to report this to the regulatory body of markets in both Argentina and the United States, so it will have to submit a statement in both exchanges."
Maril was also very clear about the possibilities of these actions being effectively transferred and pointed out that it is almost impossible: "the expropriation law prevents the Argentine government from transferring state-owned shares without two-thirds of Congress approving it. What Burford wants is to make noise and they sit down to negotiate. Judge Preska will order the transfer of the actions and if Argentina does not do it, the contempt that we have not heard since 2014 begins. Milei is targeting the United States for everything he intends for the country, but a country that does not comply with an American court, goes into contempt and is politically serious. They have to pay attention to it."
For the specialist, it is not a minor issue because similar situations will begin to arrive in the future: "this is the beginning, more requests for seizure, transfer of ownership or whatever you want to call it are coming. The problem that we Argentines have is that we do not act until we have the problem in our noses and when we have it, we blame the previous government, the climate or whatever. We avoid facing the serious problems
With this follow-on exchange :
Q :.." Sebastian, query: Is there no recursive incidence in the Court of Appeals? Isn't the question about the company's shares subordinated to the outcome of the appeal? Gcias
A: Judge Preska's ruling is a Final Judgment that can be appealed (as Argentina has done), but this ruling is also automatically enforceable unless Argentina deposits a guarantee to avoid enforcement. Argentina chose not to deposit this guarantee, which is why embargoes or similar ones began.
If the Court of Appeals rules in favor of La República and the beneficiaries of the ruling managed to get hold of some assets as collection of the judgment, then enforcement is suspended until the Supreme Court gives its opinion (if it reaches that instance).
The beneficiaries of the judgment will not have to return the seized assets(s) to Argentina until the Court issues its ruling.
In my opinion, it is a matter of negotiation. Not of seizure..."
Popcorn at the ready.