YPF gets reprieve from U.S. appeals court in share turnover fight

[Argentina flag with sun on white stripe in on a blue field]
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The 2nd U.S. Circuit Court of Appeals ruled Friday that Argentina does not need to turn over its controlling stake [https://www.bloomberg.com/news/articles/2025-08-15/argentina-wins-reprieve-on-us-judge-s-order-to-cede-ypf-shares] in YPF (NYSE:YPF [https://seekingalpha.com/symbol/YPF]) to holders of a $16B judgment won by two investors, at least for now.

The New York-based appeals court granted Argentina's request to put US District Judge Loretta Preska’s June 30 order on hold during the appeals process, which may take months.

In June, Preska ordered Argentina to surrender its 51% stake in YPF (NYSE:YPF [https://seekingalpha.com/symbol/YPF]) to partially compensate YPF shareholders after the country nationalized the company in 2012; in 2023, the judge ruled the shareholders, led by the Buford Capital, are owed payments for their shares, plus interest.

The appeals court also ruled Friday that the U.S. government may file arguments in support of Argentina’s appeal.

The order provides a reprieve for Argentina President Milei's government, which warned of irreparable harm and economic instability if it gave up its stake in YPF (YPF [https://seekingalpha.com/symbol/YPF]), the country's largest energy company.

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