Repsol required to buy Eskenazi YPF stake under 2008 accord

Repsol required to buy Eskenazi YPF stake under 2008 accord

Ben Sills at Bloomberg News reports that a 2008 agreement for Spain-based Repsol requires it to buy back the Eskenzai family’s shares of YPF, the subsidiary that was nationalised by Argentina this week, “in the event  Repsol loses majority control.”

Sills writes: “While the accord also includes an obligation for Repsol to take over loans the family used to buy YPF shares, under certain conditions, the Madrid-based company can be expected to fight a move by the Eskenazis to enforce the accord using a so-called force majeure argument, according to two lawyers familiar with the matter who saw the accord or were briefed on it. […]

“Repsol would need to prove that Argentina’s seizure of 51 percent its YPF oil company was unavoidable, under the force majeure argument, which can release a party from duties under a contract during unavoidable or inevitable consequences, such as hurricanes, the lawyers said, based on Spanish case law.”



Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s