Overview

• Judge Loretta Preska rejected Argentina’s request to suspend her June 30 order requiring the transfer of 51% of YPF shares to hedge-fund creditors.
• She maintained the original 14-day deadline but granted a three-day extension through July 17 to petition the Second Circuit for a stay of execution.
• Argentina has appealed to the Second Circuit and signaled it may seek US Supreme Court review if higher courts rule against it.
• The government argues enforcing the order violates the Foreign Sovereign Immunities Act and Argentine law mandating two-thirds congressional approval for state-asset transfers.
• Hedge funds Burford Capital, Eton Park and Bainbridge, backed by a US Department of Justice statement of interest, are pursuing discovery into Aerolíneas Argentinas, ARSAT, ENARSA and the Central Bank for potential asset seizures.