Argentina seeks to block asset seizure to help satisfy $16.1 billion judgment

NEW YORK (Reuters) - Argentina on Monday urged a U.S. judge not to let Burford Capital begin seizing assets this week as part of the litigation funder's effort to enforce a $16.1 billion judgment against the country.

In a filing in federal court in Manhattan, Argentina called Burford's stated intention to start asset seizures after Wednesday "unnecessary and premature," given that the judgment is fewer than four months old and is being appealed.

Argentina said numerous other courts have found 10- to 15-month waits in comparable cases were reasonable.

It also said principles of international comity and the "extraordinary and unique circumstances" of its case justified no rush. Argentina said $16.1 billion is 32% of its fiscal 2023 budget.

Preska agreed not to enforce her Sept. 15, 2023, judgment until the earlier of Argentina's failure to pledge assets by Jan. 10 or seek an expedited appeal by Jan. 30.

On Jan. 2, Burford said it has waited long enough, after Argentina "made clear that it does not intend to post the minimal security required to continue the (stay) pending appeal, much less pay the judgment."

Burford faces a Tuesday noon deadline to respond to Argentina's filing.

The judgment arose from Argentina's 2012 decision to seize a 51% stake in oil company YPF held by Spain's Repsol without tendering for shares held by minority investors.

Two investors, Petersen Energia and Eton Park Capital Management were awarded the $16.1 billion, and Burford has said it was entitled to 35% and 73% of their respective damages.

Argentina President Javier Milei told La Nacion last month that the country could issue a perpetual bond, which has no maturity date, if required to pay the judgment.

(Reporting by Jonathan Stempel in New York; Editing by David Gregorio)