Case study

Single-case and secondary market transaction

Law firm challenge

When The Petersen Group bought shares of Argentine government-controlled energy company YPF in an initial public offering, it was promised that if the energy company were re-nationalized, Argentina would pay fair value to shareholders.  When Argentina ignored that promise and expropriated a controlling stake in the energy company, share value fell sharply—causing Petersen, the largest minority shareholder, to become insolvent.

Burford legal finance solution

The YPF legal claim represented Petersen’s most significant asset and its best path toward creditor repayment. Nevertheless, progress stalled because Petersen lacked the resources to pursue a protracted legal claim on its own—and traditional capital providers were unable to recognize the asset value of the claim.  Using the company’s claim as collateral, Burford provided the financing the company needed to move forward, ensuring the company would have the resources to pursue the case without being forced into an early settlement.

Legal finance impact

As a result of this financing, the company—and its creditors—have a clear path to recovery and eventually being made whole.