Novo Banco is due to extend the maturity of Luis Filipe Vieira’s companies after receiving a green light from the Dispute Resolution Fund, Banco de Portugal Lusa said on Monday.
“Regarding the Mandatory Convertible Securities (VMOC) issued by Promotelor II and Inland, which are scheduled to be converted into shares – under the terms of the issuance documents signed by BES in 2011 – on August 31, 2021, Novo Banco has proposed to the Problem Resolution Fund an extension of the respective maturity “, – said in the message BdP.
This proposal “has earned a positive assessment of the Monitoring Committee” of the Fund for Reorganization, added a source in the banking sector regulator.
It was about 160 million euros of compulsory convertible shares (VMOC) Promotelor II and Inland, which expired on Tuesday.
If Novo Banco does not extend the maturity of the debt, the bank will become a shareholder in Luis Filipe Vieira’s companies as VMOC will be converted into shares immediately.
According to Banco de Portugal, if the bank were to become a shareholder in the Vieira companies, this would negatively affect the capital of Novo Banco, as they have a negative equity capital of around 200 million euros.
Also according to Banco de Portugal, the VMOC renewal “is now subject to Novo Banco obtaining the consent of the issuing companies.”
