LISBON, July 24 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,
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)