The directors of Espírito Santo Property today outlined a scheme for bondholders to get their money back in dribs and drabs over the next five years.
Desperate for approval for the Special Revitalisation Plan that management has submitted, but which needs creditor approval, management has proposed that money invested up to October 31, 2014 will be paid back to bondholders by 2020.
Espírito Santo Property was part of Espírito Santo Group and now is under the control of a Luxembourg court to which it fled to avoid bankruptcy as the web of companies started to implode.
The court has kept the company going as a commercial concern but for reasons best know to legal experts has allowed Espírito Santo family member Beirão Caetano da Veiga to remain in a management position within the firm.
The document sent today to the bondholders proposes that the payment is made in parts. The first 20% will be paid 30 days after an approval of the proposed Special Revitalisation Plan.
This, the company claims, will be followed by five equal installments of 16% between 2016 and 2020.
The company has asked its creditors to let it know in “very general, non-binding terms” whether they are up for it, or rather whether they "would be willing to facilitate the solution currently under consideration."
Offers to buy ‘Herdade da Comporta’ (pictured) owned by Espírito Santo Property were rejected last week by the Luxembourg judge as '€60 million was not enough.'
This sum would have paid off various first tier creditors including part of the money owed to the bondholders.
It is not clear how the property company can afford to pay the first 20% on offer, let alone the subsequent tranches and the bondholders may rely on the Luxembourg judge’s asset sales skills rather than those of an Espírito Santo family member whose image went south along with that of Ricardo Salgado.
See also: 'Espírito Santo's 'Jewel in the Crown' fails to sell'
http://www.algarvedailynews.com/news/5155-espirito-santo-s-jewel-in-the-crown-fails-to-sell
