Kepler-Karst Law Firm is proud to share a legal milestone of great significance in the field of sovereign litigation, asset recovery and international insolvency. The U.S. District Court for the Southern District of New York has ordered the Republic of Argentina to transfer 51% of its shares in YPF S.A., the Argentine national oil company, to the Spanish companies Petersen Energía (PESA) and Petersen Energía Inversora (PEISA), as a partial compensation for the 2012 expropriation. This is the result of years of litigation seeking the enforcement of what was prescribed in the company’s bylaws.
This important breakthrough in sovereign litigation and asset recovery was led by Armando Betancor, Of Counsel at Kepler-Karst and insolvency administrator for the Petersen companies, together with Prof. Dr. Rodrigo Olivares-Caminal, an expert in sovereign debt restructuring and co-head of the special situations practice at our firm.
The importance of this ruling is far-reaching:
- It is the first time a U.S. court has ordered the transfer of a controlling stake in a strategic national company as part of enforcement against a sovereign state.
- It sets a fundamental precedent for the protection of creditor and minority shareholder rights in international disputes, reinforcing the extraterritorial application of corporate bylaws.
- It sends a clear message to the global financial community regarding the enforceability of investor rights and the legal responsibilities of sovereign states.
There are different aspects worth stressing in the court’s decision but probably there is one line referring to Argentina’s reluctance to comply that sums it all: “Comity is not a one-way Street”. This is a strong message and a reinforcement of the rule of law.
This achievement marks a turning point in the defense of international investors and demonstrates the impact of an innovative and bold legal strategy.
You can read more details in this article.
Access the Spanish version here.
