REGULATORY · COMPETITIVE · USA
U.S. Court of Appeals halts Argentine asset tracing
Change
The U.S. Court of Appeals for the Second Circuit temporarily halted investors' efforts to identify Argentina's assets in the United States to enforce a $16 billion judgment.
Why it matters
The Second Circuit issued a temporary pause on discovery and tracing efforts by former shareholders Petersen Energía and Petersen Energía Inversora, supported by litigation funder Burford Capital. The stay covers attempts to obtain evidence on the location of Argentine assets in the United States, explicitly including central bank reserves such as gold bars. The order limits use of U.S.-based discovery and enforcement steps tied to the $16 billion judgment over the 2012 nationalization of YPF. Argentine President Javier Milei characterized the decision as "historic" and "unprecedented."
Implications
- · Prohibition on U.S. discovery steps to identify and seize Argentine assets for enforcement of the $16 billion judgment.
- · Delays in creditors' ability to execute on the judgment using assets or reserves located in the United States.
- · Central bank-held reserves in the U.S. remain protected from immediate evidentiary disclosure and enforcement actions.
- · Litigation funder-backed enforcement strategies targeting U.S.-based Argentine assets face operational constraints.
Who is affected
- · Judgment creditors and investor claimants
- · Litigation funders
- · Sovereign debtors and central banks
- · U.S. federal courts and enforcement officers
Source
Topics
Law & Public Safety Court Rulings Finance & Banking Capital Markets