BANCO ESPIRTO SANTO E (BKESF)

[Sobek]

There with no question are two banks referred to as the good one and the bad one. When they did separate, they tried to IPO Novo but were denied which raises the question why the denial?

I also read they were told to keep the company public until the issues are resolved among the institutional holders who took losses. Being the good bank is the private company, that only means the bad bank is still public. But among the holders of losses is Goldman Sachs and along with others, they are seeking restitution, disagree with how the company was separated, and have filed their complaints last January. The company says it separated legally under Portuguese law but the people that lost money are saying they violated EU regulation when they did it and are fighting it.

Novo is saying they want to wait until after they sell Novo before they resolve the issue with institutional owners that had losses which doesn't make sense, like buying a car with the risk of having to give the engine back. This could also be why they've had such a hard time closing a deal. We don't even know if this one will go through yet do we?

In other words none of the creditors had a chance to get their money back like they would under a BK in the US because of how they separated the companies. Just tell the creditors to get effed? I do not think they are taking this laying down. Exactly what they have to do and what they are doing beats me but there's obviously a chance here to make some money if they do win. So far there's been a denied IPO and previous buyout complications already that tell me along with them being told to keep the company public, something's up.

So that leaves my minuscule lotto play here for if something comes out of this which so far is indicating a strong maybe, I bank. If not oh well, won't be my first loss or my last.

Definitely treating her like a a stinky pinkie though until something more solid materializes like the details of the deal.