Largest shareholder of Espirito Santo International to file for creditor protection

by The Daily Lede


A holding company of Espirito Santo banking clan, Rioforte, is preparing to file for creditor protection in Luxembourg where the company is registered.

The filing is aimed at preventing insolvency which would involve uncontrolled asset sales at any price.  The announcement was made just hours before repayment of $1billion owing to Portugal Telecom came due, sources say.

Rioforte is the largest shareholder of Banco Espirito Santo, Portugal’s second largest lender, and holds assets ranging from real estate and hotels to farming and healthcare in Portugal and around the world.  Rioforte currently holds a 49% stake in Espirito Santo Financial Group.