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Deadline for YPF turnover now July 17

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Judge faults Argentina for continued delay

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Argentina has said a turnover could destabilize economy

(Adds details from order, efforts at comment, paragraphs 2-6,

11)

By Jonathan Stempel

NEW YORK, July 14 (Reuters) - A U.S. judge on Monday

temporarily halted enforcement of her order requiring Argentina

to turn over its 51% stake in oil and gas company YPF

to partially satisfy a $16.1 billion court judgment.

While remaining critical of Argentina's actions, U.S.

District Judge Loretta Preska pushed back Monday's deadline to

complete the turnover by three days to July 17.

She said the delay was solely to give Argentina time to

seek relief from the 2nd U.S. Circuit Court of Appeals in

Manhattan. Argentina filed an

emergency appeal

with that court on July 10.

Preska declined to grant a longer stay. She said

Argentina "continues to delay and circumvent its obligations"

under the $16.1 billion judgment, and cited legislation in the

South American country to prohibit the YPF turnover.

"The Republic has abused the court's accommodations and

thus will not be given additional ones," the Manhattan-based

judge wrote.

A lawyer and representatives for Argentina did not

immediately respond to requests for comment.

The three-day delay affords temporary relief for the

cash-strapped country, which has warned its economy could be

destabilized if it were forced to give up the YPF stake.

Argentine President Javier Milei has been seeking to bolster

foreign currency reserves and rein in soaring inflation while

dealing with a heavy government debt burden.

The dispute arose from Argentina's 2012 decision to seize

the YPF stake from Spain's Repsol without making a

tender offer to minority shareholders Petersen Energia Inversora

and Eton Park Capital Management.

Those shareholders are represented by litigation funder

Burford Capital, which has said it expected to receive

35% and 73% of Petersen's and Eton Park's respective damages.

Burford and its U.S.-based lawyer did not immediately

respond to requests for comment on Monday's order.

In September 2023, Preska ordered Argentina to pay $14.39

billion to Petersen and $1.71 billion to Eton Park.

Argentina is appealing that judgment.

The country has argued that the YPF shares were immune

from turnover under the U.S. Foreign Sovereign Immunities Act.

In its emergency appeal, Argentina said a YPF turnover would

irreparably harm its sovereignty, violate international law and

wrongly expand U.S. courts' power.

It also said it would be unfair to give up its controlling

stake in the country's largest energy company now, because doing

so would likely be irrevocable even if it ultimately won the

case.

Burford said a commercial activity exception to

sovereign immunity, plus years of evasion by Argentina,

justified a YPF turnover.