20.02.2015 - New Zealand Fund to Sue Over Loss on Espírito Santo Loan
Fallout from Banco Espírito Santo SA’s August collapse hit New Zealand on Thursday, as the country’s state retirement fund said it lost $150 million and is suing Portugal’s central bank over an investment linked to the Portuguese lender. The New Zealand Superannuation Fund in July invested $150 million in notes issued by Oak Finance Luxembourg SA, a vehicle arranged by Goldman Sachs Group Inc. to make an $835 million loan to Banco Espírito Santo. When Banco Espírito Santo failed a month later, the Oak Finance loan was placed in a successor bank, called Novo Banco, that kept the collapsed lender’s good assets and continues to operate. But in December, the loan was moved by the Bank of Portugal to the “bad bank” of the lender, which holds assets to be liquidated and where the loan has virtually no chance of being repaid...............................................Full Article: Source