Luxembourg Rejects Bankruptcy Appeal By Espirito Santo's Rioforte

A Luxembourg court on Wednesday confirmed that a holding company of Portugal's Espirito Santo family could not receive bankruptcy protection, Reuters reported. Rioforte Investments, whose assets include many of the family's holdings in real estate, hotels and plantations, had appealed against an earlier decision by a Luxembourg court to not award it protection from creditors. This appeal was struck down by judges on Wednesday, a spokesman for the court said in an emailed statement, without elaborating. Luxembourg had already rejected requests by two other holding companies, Espirito Santo Financial Group (ESFG) and its subsidiary Espirito Santo Financiere SA. Hoping to avoid a fire sale of assets, ESFG filed for creditor protection in July, before Banco Espirito Santo had to be rescued by the Portuguese state in early August due to its exposure to the debts of firms related to the family. Read more. (Subscription required.)