Argentina requests suspension of 'illegitimate' discovery process for YPF case in U.S. court

Jan 28 (Reuters) - Argentina's Treasury requested a New York court on Wednesday to suspend the discovery process in relation to state-owned oil company YPF's nationalization case, calling it illegitimate and intrusive.

Argentina is seeking to overturn the $16.1 billion awarded by a U.S. District judge to two former shareholders of YPF, Petersen Energia Inversora and Eton Park Capital Management, for alleged losses stemming from YPF's nationalization.

UK-based Burford Capital BURF.L is funding the litigation and would receive much of the award.

Argentina's Treasury said in a statement shared on X that it has filed a formal request with the Southern District Court of New York to suspend the discovery process ordered by the court and also to withdraw the request for contempt against Argentina requested by the plaintiffs.

Burford had requested information about Argentina's Central Bank's gold reserves, the Treasury added.

"The discovery process initiated by the plaintiffs and ordered by the court has been completely distorted and transformed into a tool of illegitimate harassment, intended to hinder the normal functioning of the Argentine State," the institution said.

It added that President Javier Milei's administration, which came to power in December 2023, has fully complied with the legal process and has delivered the relevant information requested by the court, and called the current discovery requests intrusive and disproportionate.

Argentina has claimed that the case against the country for seizing control of state-owned oil company YPF didn't belong in the U.S. and has argued that the case should have been heard by local judges under local law.