10/12/2023 0 Comments Chocolate eyeballs walmartThat case was marked by Elliott’s aggressive attempts to seize Argentine assets around the world. Elliott took slightly more than half of that. ![]() The hedge funds rejected two government restructuring offers over the years, which would have come at deep discounts, before finally agreeing to settle with Argentina for $4.65 billion, or 75% of their claims, in 2016. Singer and Elliott’s case dragged on for 15 years as holdout bondholders challenged Argentina’s repudiation of $95 billion in sovereign debt. The shareholders defeated Argentina’s sovereign-immunity argument at the federal appeals court in New York, but the country went to the Supreme Court, which declined a further appeal. Burford bought the rights to their claims at a public bankruptcy auction for what in retrospect seems a bargain-basement price. The YPF shareholders on whose behalf the case was brought didn’t have the resources to litigate it themselves. One of the biggest risks in the YPF case was the possibility that a US court would find Argentina immune from suit as a sovereign nation, Bogart said. A legally sound claim could face other obstacles, such as bankruptcies, excessive delays or difficulty collecting assets from countries like Russia and China. Burford denied the claims but made changes to its company structure to address investor concerns.īlock didn’t immediately respond to a request for comment on Monday.īogart said Burford evaluates many court claims that are potentially worth $1 billion or more and carries hundreds of cases at a time. Burford itself came under attack in 2019 by short-seller Carson Block, whose criticisms of its business practices knocked off almost two-thirds of its share price at the time. Litigation funding has often worked better in theory than practice though, and many of Burford’s early competitors folded. It previously sold more than a third of its interest to other investors, mainly large hedge funds, for $236 million. ![]() In the YPF case, Burford said it’s paid around $50 million in lawyers’ fees to date. Ideally, Burford identifies undervalued legal claims, pays lawyers to successfully litigate them and then takes a percentage of the award. But he said it will be “very hard for Argentina to reaccess Western capital” without resolving claims of earlier investors.” “I think that we come with a reasonable appreciation of the challenges that Argentina faces,” Molot said. In an interview Monday with Bloomberg Television, Molot struck a conciliatory tone about seeking payment from the South American nation. The award comes at a difficult time for cash-strapped Argentina, which devalued its peso last month after running low on US dollars to support it. Co-founder and Chief Investment Officer Jonathan Molot, a onetime US Supreme Court clerk and Obama Treasury Department adviser, is also a Georgetown University law professor. and a litigator at elite law firm Cravath, Swaine & Moore. Bogart was previously the general counsel for Time Warner Inc. Launched in 2009 with backing from Neil Woodford and his former fund Invesco, Burford immediately made a splash with its founders’ prestigious credentials. “The model is working, it’s delivering something of real value to the corporate clients,” he said in an interview. Read More: Argentina Ordered to Pay $16 Billion in US Suit Over YPFīurford Chief Executive Officer Christopher Bogart called the award a “milestone” on Friday, though the firm declined to comment on the specific amount of its share. It would be by far the most successful outcome yet in litigation funding, the often controversial $13.5 billion business of investing in lawsuits. ![]() Argentina immediately vowed to appeal US District Judge Loretta Preska’s Friday order, calling it “unprecedented and erroneous.” The appeal and fights over collection could delay or even derail payment.īut if the award’s upheld or even if the case settles, Burford’s results on claims it bought for $16.6 million in 2015 could outshine even the $2.4 billion Paul Singer’s Elliott Management made suing Argentina over its 2001 sovereign debt default. Whether Burford gets that money remains to be seen. (Bloomberg) - Burford Capital’s share of the $16 billion a US judge in New York ordered Argentina to pay over its 2012 seizure of oil company YPF SA is around $6.2 billion, which would give the litigation funder a more than 37,000% return on its initial investment.
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