Cross border insolvencies and financial restructurings are remarkably opaque considering we live in the Information Age. The mission of the Centre of Main Interest (the COMI) is to light some candles in the darkness and create a forum for further discussion. The Law Offices of Tally M. Wiener, Esq. are pleased to publish the COMI blog.
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Tuesday, July 22, 2014
Espírito Santo's Rioforte Files for Creditor Protection
Per the Wall Street Journal:
July 22, 2014
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.
"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.