International investors rely Clifford Chance action against the Bank of Portugal – publico

 
         

                 

                         
                     

                 

 
 

The defense of 14 large institutional investors, which includes BlackRock and Pimco, in proceedings against the Bank of Portugal (BoP) because of the five issues of transfer decision of senior obligations of Novo Banco to BES ‘bad “was delivered to the prestigious English lawyers Clifford Chance office, advances on Tuesday the Financial Times .

last week, were admitted to the Lisbon Administrative Court 29 actions against the supervisor, as revealed last Friday the Express , which has already stated that among foreign investors was Fidelity and BlackRock. The deadline for the entry of such processes ended on March 29.

PUBLIC know that one of the cases was presented by the Association of Bondholders Private Senior aggrieved New Bank (AOSPNB), including investors national, some of which emigrants, and the amount applied amounts to about 17 million. The AOSPNB already registered, has about 100 members if it counted only one holder of obligation, but the figure rises if the co-owners are considered.

The investors dispute the base is the fact that the institution led by Carlos Costa has turned back against the resolution decision in August 2014 and this option deal of discretion the five issues in relation to the universe of remaining bondholders.

the Bank of Portugal justified the transfer of the five obligations of the New Bank – set up under the intervention in BES – the fact that these have been addressed to qualified investors (with greater knowledge of the risk of applications). Tens emissions remained in the institution led by Eduardo Stock da Cunha.

The truth is that there are also private investors, elderly and low financial literacy, who acquired these bonds in the retail market.

the senior notes are in a privileged position over other creditors in bankruptcy proceedings, which in this case is not worth much, since the BES dubbed “bad” practically only adds toxic assets, ie doubtful to meet the high existing financial liabilities.

According to the Express , “in many of the cases brought against the Bank of Portugal appear Novo Banco, BES and the resolution fund as counter-parties, that is, entities that may be affected by a decision to give reason to the authors of these actions. “

If the action to determine the nullity of the decision of the supervisor, canceling the transfer, the New Bank you may have to repay the principal and interest of the bonds.

in addition to the processes related to bond issues, already have entered in the Portuguese courts numerous lawsuits, including popular, asking for the annulment of the decision Resolution of BES. They were presented by the bank’s shareholders and commercial paper holders of bonds issued by the institution and by companies of Grupo Espírito Santo, underwritten by domestic and migrant residents.