Court rejects requests for controlled management of ESFG and ESFIL.
The Espírito Santo Financial Group (ESFG) announced on Thursday it would ask the insolvency proceedings and also its subsidiary ESFIL – Espírito Santo Financière make the same request, the company informed the Commission of the Securities Market Commission (CMVM)
In a statement sent to the market regulator, ESFG advises that “your Council. of Directors decided to ask insolvency “and also” asked its subsidiary ESFIL insolvency. “
The decision comes after the Luxembourg Court rejected on Friday applications from controlled management and ESFG the ESFIL, companies Espírito Santo Group.
In a statement released this Friday, ESFG states that “it is expected” that the Luxembourg court pass an order of insolvency and “appoint one or more receivers to properties ESFG and ESFIL in hearings Friday, October 10. “
ESFG, the financial arm of the Espírito Santo Group, recalls that the procedures in relation to requests for controlled management of Holy Spirit International (ESI) and Rioforte Investments, the largest indirect shareholders ESFG, ongoing.
confidential Processes
On Friday, source of the Luxembourg court explained to Lusa that the processes relating to controlled management are confidential, so the judiciary can not provide any information, highlighting only that the decision was taken after the experts’ reports have been reviewed.
The same source referred to Article 2 of the law, explaining that requests for controlled management are rejected when, based on the documents submitted, there is no evidence that such management would progressively improve the normal course of business or improve their situation in terms of assets.
While both in the same direction, the decisions were made separately, given that they are two requirements for controlled management, presented by ESFG to 24 last July and the ESFIL to 31 of the same month.
A few days after these requests, on 3 August, the Bank of Portugal took control of BES, after the bank filed semiannual losses of € 3.6 billion and announced the separation of the institution.
called bad bank (‘bad bank’), a vehicle that keeps the name Banco Espírito Santo (BES), were concentrated toxic assets and liabilities of the BES, so as shareholders, while the ‘good bank’, the bridge bank which was named New Bank, the assets and liabilities were not considered problematic.
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