Repsol Seeks Class-Action Suit against Argentina in NY Court
MADRID - Spanish oil firm Repsol YPF SA said Wednesday it had filed a lawsuit against Argentina in a court in New York after the country nationalized the company's local unit.
In the suit--which Repsol is pursuing in the name of other YPF shareholders as a class--Repsol claims among other things that Argentina failed to comply with YPF bylaws because it didn't offer to buy all of YPF's outstanding Class D shares as it acquired of a controlling stake in the company.
Repsol is seeking compensatory damages.
The suit comes after Repsol initiated other proceedings related to the expropriation of 51% of YPF SA, Argentina's leading oil-and-gas company, leaving Repsol with 6.4%. Earlier this week, the oil company said it had notified Argentina that it is contesting the government's compliance with an investment protection agreement.
The notification is a first and necessary step to face-off with the Argentine government at the World Bank's International Centre for Settlement of Investment Disputes.
The arbitration center will be responsible for resolving the dispute if the Argentine government and Repsol don't reach an agreement in six months.
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