YPF and Repsol agree to pay $575 million to close a US environmental damage lawsuit

And the oil company YPF and the Spanish company Repsol agreed to this Pay 575 million dollars To close the trial of the case Maxusclaim to environmental damage It was started in 2005 by a state New Jersey (USA):.

The settlement amount will be paid in equal parts by both companies, which each has promised to disburse $287.5 million. Repsol is involved in the agreement because the lawsuit began when the Spanish company was a shareholder in YPF.

As mentioned, the country of Argentina confiscation Repsol’s actions in 2012, which led to a trial unfavorable to the state and whose first sentence has been known for days. It was a lawsuit brought by the Burford Fund, which would be in a position to claim about US$3.5 billion.

Tonight, YPF reported that it has formalized an agreement with Maxus filter box It stated that “if certain conditions are met, it will dismiss all actions against YPF and Repsol and will grant a full release and innocence from claims made by Trust Trust for up to $14 billion“.

The company stated that:

– In 1992 YPF was privatized and José Estenssoro took over. In 1995 and under the same management, YPF, already privatized, used an international expansion strategy and acquired Maxus, a North American oil and gas company.

– This company, which has assets in different countries around the world (United States, Bolivia, Indonesia, Ecuador and Venezuela) was the beginning of a business strategy that in the light of time was presented as attractive to the company.

Years ago, in 1986, Maxus sold his chemical company to the Occidental Chemical Corporation I agreed to compensate her for environmental negatives derived from its operations.

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Later, in 2005 New Jersey Lawsuit against Occidental and Maxxis -Later added YPF and Repsol- to file Passaic River pollution (10 km from New York City) with chemical waste.

– Subsequently, Occidental confirmed its compensation And Maxus, the company that YPF acquired in 1995, fulfilled its obligations until June 17, 2016, when it filed for bankruptcy and was subsequently declared bankrupt.

in June 2018 The Maxus Liquidation Trust sued YPF, Repsol, and some affiliatesfor up to $14 billion in bankruptcy court for the District of Delaware, alleging that Maxus intended to obstruct, delay, or defraud its creditors.

the agreement

After years of litigation and negotiations over the Maxus Liquidation Trust and after the acquisition of YPF, in June 2002 a partial summary judgment from the Bankruptcy Court, YPF and Repsol reached an agreement. settlement agreement The Maxus Liquidation Trust hereby waives the claims it has brought against YPF and Repsol in the Delaware County Bankruptcy Court, as well as all current and future claims it may have against YPF and Repsol.

in contrastYPF and Repsol agree to pay $287.5 million each, for a total of $575 million.Yes, without YPF or Repsol taking any responsibility.

This agreement that is Subject to court approval and other conditions that must be met over the coming months, seeking to resolve a dispute that has been going on for nearly 20 years.

Similarly, YPF and Repsol have signed a Transaction Agreement with Occidental Chemical Corporation and certain of its subsidiaries, pursuant to which Occidental has agreed to give up all claims That it may be against YPF or Repsol, in relation to the entities of Maxus, the Passaic River and other areas subject to environmental treatment.

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Along these lines, YPF and Repsol have also signed agreements with various government entities, including the Department of Justice acting on behalf of the US Environmental Protection Agency, and the states of Ohio and Wisconsin, pursuant to which the government entities have agreed not to file lawsuits against YPF and Repsol. which are similar to the claims already submitted by the Maxus Settlement Trust.

Likewise, agreements with Occidental and the United States are subject to certain pre-existing conditions.

If conditions are met, the agreements will end the years-long litigation, reaching a fair and reasonable settlement for all parties, which will allow YPF to continue to focus its efforts on value creation and hiring, deepen its production growth and focus. Its efforts regarding the investments needed to strengthen and diversify the Argentine energy matrix.

Freddie Dawson

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