My Two Cents: As things get worse for governments around the world they will all increasingly do what they do best: Scapegoat and Steal. While everyone by now is aware of Argentina’s government expropriation of 51% of oil and gas company YPF, less people are aware of the impact this will have on the billionaire Eskenazi family. As a result of the seizure and likely cut to the dividend payout, the family may default on the debt that they used to purchase their stake in the company.
For example: “Should the Argentine government cut the dividend at YPF (which is the most likely scenario), the Petersen Group would default on its loans,” Exane BNP Paribas analysts Alexandre Marie and Charles Riou said in a note to clients today. “A dividend payout of less than 90 percent triggers a default in all four loans.”
It appears that the backround story to this whole fiasco is that the government of Argentina leaned on the managers of YPF to reduce dividends in order to invest in what the government thinks are “good oil projects.” When they pushed back, the thugs in the government decided to attempt to financially destroy one of the richest families in Argentina. Central Planning and Theft…coming to a government near you. Of this I am 100% certain and all under the name of “fair share” and “general welfare.”
Billionaire Eskenazis Confront Repsol Debt After YPF Seizure
Argentina’s billionaire Eskenazi family is confronting more than $2 billion of debt with its main source of income at risk after the government seized control of YPF SA (YPFD) in a dispute over investments and dividends.
The family’s Petersen Group, which has 25 percent of YPF, owes Spanish partner Repsol YPF SA (YPF) (YPF) 1.45 billion euros ($1.9 billion) after it bought a stake in YPF, the Madrid-based company said yesterday. The Eskenazis counted on YPF dividend payments of as much as 90 percent of profit to repay Repsol and about $680 million of loans with banks including Citigroup Inc.