BES's largest shareholder seeks controlled management in Portugal

LISBON, July 24 Thu Jul 24, 2014 1:16pm EDT

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LISBON, July 24 (Reuters) - Banco Espirito Santo's largest shareholder is unable to meet its obligations and is seeking controlled management in Luxembourg, the company said in a statement on Thursday evening.

The move means that there is a stay on claims by all creditors, including those who have guarantees, until the judge takes a decision on whether the protection will be extended, ESFG added.

Luxembourg law allows for controlled management for companies unable to meet their obligations due to temporary financial difficulties, in circumstances where controlled management would help them get the most value from their assets.

ESFG, which is controlled by the bank's founding family the Espirito Santos, owns about 20 percent of the bank, Portugal's largest listed player. (Reporting By Laura Noonan; Editing by Alessandra Galloni)

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