The sale of the Portuguese insurance company Tranquildade to the US insurer Apollo may have to be aborted due to an injunction issued by the review judge Eurico Reis.
The suspension of the sale was known by Novo Banco management on Tuesday, 23 December but it has not revealed who filed the injunction and on what grounds.
Novo Banco has been trying to reach agreement to extend the transaction date beyond the current deadline of December 31 when it will fall through anyway.
The deal to sell Tranquilidade was announced on 16 September with terms that included Novo Banco receiving €44 million up front with Apollo agreeing later to inject €150 million to restore the insurer to full financial strength.
Tranquilidade insurance was owned by Espírito Santo Financial Group but was pledged as security. This has interrupted play as Grupo Espirito Santo is demanding the cash from any sale or it will go to court.
