The Court of Appeal has upheld the ruling that Novo Banco does not have to repay €179 million lent to it by two companies in the Amorim Group in the form of commercial loan notes.
The losses suffered by BES creditors included an investment made when Amorim was being run by its doughty chairman, Américo Amorim, whose daughter Paula has taken over the management of the group since his death in July 2017.
One of the corporate loose ends being dealt with by Paula Amorim is the question of the worthless BES paper that was issued at a time when the bank was desperately trying to rake in cash to stay afloat.
This was not to be and thousands of depositors lost their money when BES collapsed in 2014, corporate clients among them.
In a judgment dated 19 June 2017, the Court of Appeal upheld a lower court decision that BES did not have to transfer the loan note to Novo Banco when this new bank was being set up with only the 'good assets' of BES.
Paula Amorim complained about the court decision, claiming that it was issued by one judge only. She is insisting that the case be put in front of a panel of judges and a new ruling issued.
Topbreach and Oil Investments, companies based in Amsterdam and controlled by the late Américo Amorim, had €179 million invested in Espírito Santo Irmãos loan notes.
Paula Amorim has the resources to try and find a way around this hugely expensive legal setback but this may be the end of the road, just one more painful reminder that banks, however big and shiny they may look, can be run by crooks.
