Argentina ordered by U.S. court to pay $391 million over airline nationalization

Aerolíneas Argentinas expropriation international arbitration Titan Consortium sovereign debt

A U.S. federal appeals court has ruled that Argentina is liable for approximately $391 million stemming from the 2008 nationalization of Aerolíneas Argentinas and Austral. The dispute originated when the airlines, previously controlled by the Spanish conglomerate Grupo Marsans, were expropriated in violation of international treaties.

Following a 2017 ruling by the World Bank’s International Centre for Settlement of Investment Disputes, Argentina was ordered to pay $320.76 million plus interest and legal costs. The claim was later sold by litigation finance firm Burford Capital to Titan Consortium.

Argentina challenged the enforcement of the award in the United States, arguing that Titan Consortium waited too long to file. The government contended that a three-year statute of limitations should apply. However, a unanimous federal appeals court agreed with Titan, supporting the argument that these awards are treated as final court judgments, which typically allow for a 12-year enforcement period.

Entities

Aerolíneas Argentinas · World Bank

Sources

Argentina Nationalized Aerolíneas Argentinas—18 Years Later, A U. S. Court Says It Owes $391 Million [boardingarea.com]

18 days ago

Argentina Nationalized Aerolíneas Argentinas—18 Years Later, A U. S. Court Says It Owes $391 Million [viewfromthewing.com]

18 days ago