A US judge has authorised investment fund Titan Consortium to begin proceedings seeking the seizure of Argentine state assets abroad over a compensation dispute arising from Argentina’s 2008 expropriation of its national airline, according to the ruling described in the source.
The decision rejected Argentina’s argument that the claim had expired under the applicable statute of limitations. Argentina had sought to have the measure annulled, arguing that more than 12 years had elapsed since the original judgment, exceeding the three-year statutory period it said applied to such claims. The US court nevertheless rejected the challenge filed in 2025 and upheld the payment obligation sought by private creditors.
The dispute originates from a ruling by the International Centre for Settlement of Investment Disputes (ICSID), which ordered compensation for Spanish companies whose interests had been expropriated in connection with the Argentine Airlines case. After years of litigation involving the original beneficiaries and financial entities that subsequently acquired rights to the claim, the amount now being pursued is stated at $390 million.
The ruling was issued by Judge Jia Cobb of the D.C. Court of Appeals. According to the source, the decision allows the plaintiff firm to seek precautionary seizure of aircraft or other Argentine state assets that enter the judicial jurisdictions of New York or Washington.
The potential enforcement action creates a particular concern for Argentine public assets operating internationally. Government legal representatives are evaluating operational alternatives to protect state property deployed across international routes and markets, amid the possibility that aircraft or other assets could become subject to seizure while abroad.
The decision contrasts with a separate ruling concerning Argentina’s renationalisation of oil company YPF. Around the same time, the US Court of Appeals for the Second Circuit in New York agreed to maintain a temporary stay on the transfer of YPF shares to plaintiff funds. The ruling supported the sovereign defence doctrine advanced by Argentina’s central government, according to the source.
The contrasting outcomes have renewed concerns over Argentina’s exposure to asset-related litigation in US courts, particularly as the country faces significant economic instability domestically. The airline case demonstrates how an international compensation dispute can develop into an attempt to enforce an award against state property located outside Argentina.
The case also forms part of a wider pattern of legal exposure described in the source, involving disputes over Argentine assets following state expropriations. Creditors have increasingly used US jurisdictions in efforts to enforce international arbitration awards against Argentina, while the government considers measures to shield public assets operating in foreign markets.
The immediate issue is the scope of enforcement available to Titan Consortium following the US court’s ruling. The source states that the plaintiff is now authorised to seek precautionary seizure of aircraft and other Argentine state assets entering New York or Washington judicial jurisdictions, with the underlying claim exceeding $390 million.
