Overview

• Judge Loretta Preska rejected Argentina’s bid on July 14 to suspend her order requiring transfer of 51% of YPF shares to Burford Capital and Eton Park.
• On July 15 the Second Circuit granted a temporary administrative stay of Preska’s order, suspending enforcement while appeals are pending.
• Argentina’s lawyers contend the transfer would violate the Foreign Sovereign Immunities Act and domestic law that bars state asset sales without congressional approval.
• The appeals court’s pause allows Argentina to avoid immediate asset turnover and to prepare for a possible review by the U.S. Supreme Court.
• Legal observers say the outcome could shape future enforcement of judgments against sovereign assets and influence other creditors seeking similar remedies.