The liquidator of Rioforte Investments, part of the Espírito Santo Group, today announced the suspension of all activity related to the sale of Herdade da Comporta, the large farm and luxury residential estate favoured by Espírito Santo clan members.
"In the light of ongoing procedures, we are sorry that the receivers of Rioforte Investments have no choice but to suspend the sale of assets in Herdade da Comporta - Atividades Agro-silvícolas e Turísticas S.A. and in Herdade da Comporta - Fundo Especial de Investimento Imobiliário Fechado,” according to a statement posted on the official receiver’s website.
"Following the seizure of several Rioforte Investments’ assets, and of assets owned by its subsidiaries and affiliates, the Luxembourg liquidators have been in contact with the Portuguese authorities, and in particular the Central Research Department for Penal Action, to implement cooperative measures."
The sale of Herdade da Comporta located in the Alcacer do Sal and Grândola council areas, had been agreed by a court in Luxembourg following the financial collapse of the Espírito Santo collapse.
In May, the Attorney General's Office said that it had seized hundreds of properties from individuals and companies linked to Espírito Santo designed to prevent "any dissipation of assets" that could jeopardise compensation payments to the taxpayer if luminaries such as former BES chief executive Ricardo Salgado are convicted and fined.
The Rioforte seizures involve over 586 properties with a sale value of around €1.8 billion.
The US fund, Armory Merchant Holdings, which in early April was said to have bought into the Comporta Estate confirmed later that it had been reviewing the investment but that no money had changed hands.
Founding Partner of Armory, David Storper commented,
"We have not made an investment other than a significant amount of time and money applied to analysing a potential investment. Our goals have always been to preserve the beauty and prestige of the Comporta properties and ensuring it will be properly managed while also improving the economic conditions of the local farmers, other workers and residents of the region."
The New York based fund managers were rumoured to have bought a Rioforte €100 million defaulted loan held by Caixa Geral de Depósitos which would have given the Americans a slice of the action. Luckily the deal had not progressed.
Rioforte's creditors now are in the queue behind the Portuguese state for a share of any money raised from selling off Rioforte's property holdings.
The Luxembourg liquidator has been outfoxed by Judge Carlos Alexandre who is running the case against Ricardo Salgado and aims for the state to gain from the sale of Rioforte assets rather than secondary creditors many of whom were sold Rioforte bonds in BES branches as 'safe' investments.
See also:
http://www.algarvedailynews.com/news/5638-many-rioforte-properties-held-in-ricardo-salgado-s-name
Comments
The import of this piece is that the poor deceived investor now stands even less chance of reimbursement, as the Republic of Portugal, originally responsible for the oversight of BES, shoulders its way to the front of the queue.
Has anyone thought that one consequence of the BES scam is that Portuguese banks will have great trouble selling utterly safe investments in the future?