Overview

• On July 10, Argentina filed an appeal in the Second Circuit against Preska’s June 30 order to hand over its 51% YPF stake, preempting her ruling on a stay of execution.
• Judge Loretta Preska has called an urgent July 15 hearing to settle creditor requests for “alter ego” information on Aerolíneas Argentinas, ARSAT, ENARSA and the Central Bank.
• Argentine lawyers argue that enforcing the transfer would breach domestic law requiring congressional approval and would inflict irreversible harm on national sovereignty.
• With a July 14 deadline looming for a stay, the government is preparing to petition the US Supreme Court to avert contempt if the Second Circuit does not suspend the turnover order.
• The US$16.1 billion award stems from Burford Capital and Eton Park’s suit over the 2012 expropriation, highlighting clashes between US court judgments and Argentine legal constraints.