Market's view on Burford Capital
Published on April 2024
- Stock watchers are discussing the legal battles Argentina faces concerning the ownership of YPF shares, with Burford Capital seeking a 51% stake in YPF to settle a US$16-billion court judgment.
- There is an ongoing appeal by Argentina against a US court ruling in favour of Burford Capital. The final decision by Judge Loretta Preska is expected around June/July.
- Argentine President Javier Milei is focusing on other priorities while the country faces pressure from international lawsuits, including an impending decision on whether YPF shares will be transferred to judgment creditors.
- Concerns are raised about Argentina’s political management and strategic decisions affecting YPF, including a significant planned disposal of oil assets.
- Observations are made on Argentina’s economic strategies, including President Milei’s request for NATO partnership, fiscal reforms, and maintaining a budget surplus, which have supported the prices of Argentine bonds.
- Discussion includes Burford Capital’s efforts to keep their legal filings secret to avoid disrupting negotiations, although the files were ultimately unsealed.
- YPF’s share price shows unexpected growth despite the ongoing legal and political turmoil, puzzling some stock watchers.
- Stock watchers speculate on the strategic implications of Burford’s legal actions against Argentina, suggesting that these moves are more about negotiation leverage rather than a direct intention to take over YPF shares.