Credit Suisse Group AG (CSGN) said the overdue tranche of a $1 billion loan to Argentina’s Petersen Group backed by a stake in oil producer YPF SA (YPF:US) is “payable immediately” in its second notice in seven days.
Credit Suisse sent the warning to the company owned by Argentina’s Eskenazi family yesterday, a day after a $400 million payment was due, following a previous notice on May 11, according to a YPF filing (YPF:US) to the U.S. Securities and Exchange Commission today. The loan was granted by Credit Suisse, Goldman Sachs Group Inc (GS:US), BNP Paribas SA (BNP) and Banco Itau BBA SA in 2008 to help fund the purchase of a 15 percent stake in YPF.
The Eskenazis were using YPF dividends of as much as 90 percent of profit to meet the obligations before the Argentine government opposed the payments to shareholders last year and seized control of the oil producer last month. President Cristina Fernandez de Kirchner ordered the takeover on April 16, seizing a 51 percent stake from Spain’s Repsol YPF SA. (REP)
YPF’s American depositary receipts declined (YPF:US) 4.8 percent to $12.35, the lowest closing price in almost 10 years, on Dec. 31, 2002, when the shares ended the day at $12.17.
Petersen borrowed $601 million from Credit Suisse, $175 million from BNP, $150 million from Itau BBA and $100 million from Goldman Sachs in 2008, according to regulatory filings. It also owes a combined $626 million to Credit Suisse, Itau, Citigroup Inc. (C:US), BNP and Standard Bank Group Ltd. (SBK) as part of a 2011 loan to buy another 10 percent in YPF, the filings show.
De Vido, Kicillof
The bank loans are backed by 22 percent of YPF. Repsol, which lent Petersen $1.7 billion for the two stake purchases, is entitled to 3 percent of YPF if the Argentine company defaults.
Fernandez named Planning Minister Julio De Vido and Deputy Economy Minister Axel Kicillof to oversee YPF management until the shareholders name a new board. Fernandez also named Miguel Galuccio as YPF general manager.
The government has said Repsol underinvested in Argentina since its acquisition of YPF, which produces about 35 percent of the country’s crude. Repsol denied underinvesting and on May 15 started legal action against Argentina and notified officials of the South American country that it intends to file a claim with the World Bank’s International Center for the Settlement of Investment Disputes in Washington.
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