LISBON—Rioforte Investments SA, a unit of troubled Portuguese conglomerate Espírito Santo International SA, said Tuesday that it followed its parent's footsteps and filed for creditor protection in Luxembourg after it became unable to repay some of its debt.
Among the debt was 847 million euros ($1.14 billion) in Rioforte commercial paper sold toPortugal Telecom PT +1.64% SGPS. Last week, the Portuguese telecom giant said it didn't get repaid, and it would pursue legal options to get that money back.
"Rioforte believes that a transparent and orderly restructuring of the company in the context of a controlled management procedure will allow the long term financial sustainability of the company and, when appropriate, the organized disposal of its assets, all in the best interests of all its stakeholders, in particular its creditors," it said in a statement.
It added the company has been unable to meet obligations that have matured since July 9 and became due after July 16.
Espírito Santo International, which in May was found to be in serious financial condition following an audit by Portugal's central bank, made a similar statement Friday when itrequested creditor protection. That request has been approved by the court in Luxembourg, the company said in a separate statement Tuesday.

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