Armouring up: BES holding company seeks protection

Company of Portugal’s largest listed bank says it had filed for creditor protection.

LISBON: The troubled holding company of Portugal’s largest listed bank said it had filed for creditor protection as it struggles to pay a “material” amount of maturing debt. Espirital Santo International said it has applied to be placed under management by Luxembourg authorities in a move that would be “more adequate than a rapid and massive liquidation”. “The controlled management regime will allow the company to defend the interests of its creditors in a transparent and orderly way under the control of the courts and nominated officials,” the company said in a statement. The move will heap more pressure on Portugal’s Banco Espirito Santo (BES), which was plunged into crisis when allegations surfaced that ESI had covered up accounting problems. Portuguese authorities said they had opened several investigations into possible criminal offences related to Espirito Santo and its entities.

Published in The Express Tribune, July 20^th, 2014.

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