Espírito Santo Financial to File for Bankruptcy

The Espírito Santo Financial Group, which at one point held about 25 percent of the bailed-out Portuguese lender Banco Espírito Santo, said on Thursday that it would file for bankruptcy after it was denied creditor protection by a Luxembourg court last week, the International New York Times DealBook blog reported. Espírito Santo Financial is part of a complex web of companies controlled by the Espírito Santo family. Portuguese regulators were forced to engineer a rescue of Banco Espírito Santo in August after the Portuguese bank was undone by its exposure to its struggling corporate parent, Espírito Santo International. The bank, one of Portugal’s largest financial institutions, was shut down and its healthy businesses were transferred to a new entity, Novo Banco. Espírito Santo Financial was one of several entities that sought creditor protection after regulators raised questions this year about “irregularities” in its corporate parent’s finances. In a filing with regulators in Portugal on Thursday, Espírito Santo Financial said that it and another unit, Espírito Santo Financière, would file for bankruptcy after a Luxembourg court turned down their request for so-called controlled management. Read more. (Subscription required.)