Portugal Puts Up $6.6B Loan To Rescue Failed Banco Espirito
By Andrew Scurria
Law360, New York (August 4, 2014, 1:05 PM EDT) -- Portugal’s second-largest lender, Banco Espirito Santo SA, will split up under a rescue plan backstopped by €4.9 billion ($6.6 billion) in state money after the bank failed to weather losses on its exposure to the troubled Espirito Santo financial group, the Portuguese central bank said Sunday.
Banco de Portugal’s plan will see the healthy assets and businesses of BES spin off into a new, healthy bank with a rump entity remaining to wind down problem assets and shift losses on to shareholders and subordinated creditors. The...