Business
Statement on YPF Damages Ruling
Statement on YPF Damages Ruling.
About this update from Burford Capital Limited
[{"type":"text","content":"\n\n \n8 September 2023\n \nReleased out of hours on September 8, 2023, and queued for release via RNS upon its reopening on September 11, 2023.\n \n \nBURFORD CAPITAL STATEMENT ON YPF DAMAGES RULING\nCourt's Ruling suggests a final judgment of approximately $16 billion against Argentina\n \nBurford Capital Limited, the leading global finance and asset management firm focused on law, today releases the following statement in connection with the September 8, 2023 Findings of Fact and Conclusions of Law (the \"Ruling\") issued by the United States District Court for the Southern District of New York (the \"Court\") in connection with the Petersen and Eton Park cases against the Republic of Argentina and YPF (the \"Case\" or the \"YPF Litigation\").\n \nThe Ruling follows a prior decision on March 31, 2023 by the Court granting summary judgment on liability against Argentina and setting for an evidentiary hearing questions around the date on which Argentina should have made a tender offer for YPF's shares and the appropriate rate of pre-judgment interest to be applied. That evidentiary hearing was held on July 26-28, 2023 and the Ruling is the Court's decision on the issues raised for hearing.\n \nThe Court decided the issues raised at the hearing in Petersen's and Eton Park's (collectively, \"Plaintiffs'\") favor, holding that the appropriate date for the tender offer was April 16, 2012 and that pre-judgment interest should run from May 3, 2012 at a simple interest rate of 8%.\n \nThe Court has asked the parties to memorialize the Ruling in a proposed judgment and submit it to the Court, which Petersen and Eton Park will endeavor to do forthwith. We discuss below the computation of potential damages but in round numbers the Court's Ruling implies a judgment against Argentina of approximately $16 billion.\n \nIn other words, the Ruling results in a complete win against Argentina at the high end of the possible range of damages.\n \nJonathan Molot, Burford's Chief Investment Officer who leads Burford's work on the Case, commented:\n \n\"We have been pursuing this case since 2015 and it has involved substantial Burford management time along with the dedicated engagement of a team of some of the best lawyers on the planet from multiple law firms and world-class experts...