October 17, 2014 / 10:17 AM / 5 years ago

Espirito Santo family's Rioforte to be liquidated

LISBON, Oct 17 (Reuters) - The Espirito Santo family’s main holding company for its non-financial assets, Rioforte, has been denied controlled management by a Luxembourg court, Rioforte said on Friday.

The decision means that the company will go into liquidation.

“The liquidation of the assets of Rioforte will be decided by a legal liquidator, which will be named by the court,” Rioforte said in a statement.

The Espirito Santo banking family’s empire crumbled under huge debts this summer, forcing an emergency rescue of Portugal’s Banco Espirito Santo - the bank they founded.

The Luxembourg court previously also denied controlled management for two other family holding companies, pushing them into liquidation.

Controlled management would have offered some protection from creditors.

Reporting By Axel Bugge

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