About 20 international funds that lost money on the end of the BES, asked the European Union to annul the resolution as applied to the bank, which may stop the sale of the New Bank, according to Bloomberg.
The plaintiffs want the EU General Court (TGUE) annul the decision in August to split the bank into two institutions: the “bad bank”, which got 750 million in subordinated debt issued in November 2013, and the New Bank, who held the senior debt.
The holders of nearly half of the debt issued by Banco Espírito Santo (BES) and placed in the “bad bank” put forward processes in TGUE (an organ of the Court of Justice of the European Union), alleging that the BES resolution decision was made based on wrong information
The complainants -. among which are the Brazilian group BTG Pactual and the US Third Point – requested the opening of a formal investigation, reveals the Bloomberg financial information news agency. According to Bloomberg, the funds want to have a response from the court before the New Bank be sold.
The funds understand that the European Commission adopted a decision based on wrong information and based on a preliminary assessment and the rescue of the bank was disproportionate, because they understand that private capital was available to inject the bank.
On August 3, the Bank of Portugal took control of BES, after half-yearly losses of 3, 6000 million, and announced the separation of the institution into two entities: the so-called “bad bank” (a vehicle that keeps the BES name and concentrating the toxic assets and liabilities of BES, as well as shareholders) and the Bank of transition, which was designated New Bank.
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