Courtesy of ZeroHedge. View original post here.
Submitted by Tyler Durden.
Following this morning's farce of huge investor demand and then Bank of Portugal's Costa 'hoping' for demand from investors willing to pile more money on losing money into Espirito Santo, it appears things have escalated rapidly…
- *ESPIRITO SANTO INTERNATIONAL SAYS IT CAN'T MEET OBLIGATIONS
- *ES INTERNATIONAL APPLIES FOR `CONTROLLED MANAGEMENT' REGIME
- *ES INTERNATIONAL APPLIES FOR REGIME UNDER LUXEMBOURG LAW
The "controlled management" application is the equivalent of declaring a breakup or controlled bankruptcy process (as we explained here). ESI is the ultimate HoldCo in the Banco Espirito Santo family.
As Bloomberg reports,
Espirito Santo International, a holding company that’s part of Grupo Espirito Santo, requested to be placed under “controlled management” under Luxembourg law, co. says in statement.
ESI says can’t meet obligations, “due to a significant part of its debt maturing”: statement
“Once under this regime, all judicial actions by creditors are suspended to allow the implementation of an asset management and liquidation plan under a court’s control”: statement
