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Mon 23 Mar 2015 06:05 PM

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Secured creditors of Espirito Santo Dubai unit to get 82.7% payout

Liquidators estimate that they will pay out over $77m of the $93.5m owed to depositors in stricken bank

Secured creditors of Espirito Santo Dubai unit to get 82.7% payout

Liquidators for ES Bankers (Dubai) Ltd (ESBD) have estimated they will pay out 82.7 percent of the $93.5 million owed to depositors in the stricken bank, advisory firm Deloitte said on its website.

However, unsecured creditors of the Dubai arm of the Espirito Santo empire, which stumbled after accounting irregularities were identified at one of its holding companies earlier last year, will get none of the $14 million they are owed, the document added.

In October 2014, a Dubai judge approved an application to liquidate the local business following an earlier freezing of deposits to protect customers.

It was part of global legal action taken after a 4.9 billion euro ($5.35 billion) bailout for Banco Espirito Santo, formerly Portugal's largest listed bank, in the wake of the accounting issues.

A total of $77.3 million was available for depositors, said the document, an update to depositors, dated January 25, published on Deloitte's website. Deloitte's Philip Bowers and Neville Kahn were appointed as joint liquidators of ESBD in October.

"Absent further realisations, there will be no funds available for unsecured creditors or shareholders," the document said.

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