Nationalizing YPF: how the conflict began
This is a story worth turning into a movie. And like any good drama, it starts with national pride and ends up at the door of an American courtroom.
In 2012, Cristina Kirchner's government nationalized the oil company YPF. Argentina bought back the controlling stake from Spain's Repsol, but somehow "forgot" about the other shareholders — specifically the Petersen Group, tied to the Eskenazi family. They lost the ability to sell their 25% stake and decided to fight back... just not on their own.
Burford Capital: litigation investing with billion-dollar returns
Enter Burford Capital, a legal venture fund that invests in lawsuits. In 2015, they bought the claims from Petersen and Eton Park, hired lawyers, and launched litigation against Argentina in New York. Ten years later, the court ruled: yes, rights were violated. The claim came to $16.1 billion.
The New York ruling: $16.1 billion and YPF shares
Today, a federal court in Manhattan ruled that Argentina must hand over 51% of YPF's shares to satisfy the judgment. The market value of those shares is roughly $6-8 billion. And if Argentina won't hand them over voluntarily, Burford and the court will sort it out themselves — the shares are held in a US depository, after all.
YPF shares have already dropped 6%, while Burford's jumped 22%. A perfect illustration of how a legal strategy turns into a hedge-fund play.
This story isn't really just a dispute about fairness. It's a reminder. Even sovereign states aren't immune to commercial law once their assets sit in New York.
And yes, if Netflix made a series out of this, it would have everything: oil, politics, Wall Street lawyers, an aging Argentine dynasty, a judge in a black robe, and headlines about billions.