By Rebecca Howard
WELLINGTON, New Zealand--The New Zealand Superannuation Fund
confirmed Friday it had filed debt-recovery proceedings in a U.K.
court against Novo Banco, a bank formed by the Portuguese central
bank resulting from the collapse of Banco Espírito Santo.
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 the successor bank, Novo Banco, which kept the
collapsed lender's good assets and continues to operate. But in
December, the loan was moved by the Bank of Portugal, the
Portuguese central bank, to the "bad bank" of the lender, which
holds assets to be liquidated and where the loan has virtually no
chance of being repaid.
The NZ Superannuation Fund, New Zealand's sovereign-wealth fund
for state pension payments, forms part of a group of Oak Finance
investors that have filed the debt-recovery proceedings in the High
Courts of Justice in London.
The investors include, among others, the New Zealand
Superannuation Fund, ANDBank, Avenue Capital Group, Elliott
Management Corp., Karrick Ltd., Silver Point Super Fund, Capital,
FFI Fund Ltd., FYI Ltd., Olifant Fund, Ltd. and TDCPensionskasse, a
representative from the New Zealand Superannuation Fund
confirmed.
According to a statement from the New Zealand Superannuation
Fund, the Oak Finance investors will also shortly be filing public
law proceedings in Portugal against the Bank of Portugal,
challenging the validity of the bank's decision purporting to
retransfer the Oak Finance loan, with retroactive effect, from Novo
Banco to Banco Espírito Santo.
Margot Patrick contributed to this article.
Write to Rebecca Howard at rebecca.howard@wsj.com
Access Investor Kit for Banco Espírito Santo SA
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=PTBES0AM0007
Access Investor Kit for The Goldman Sachs Group, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US38141G1040
Subscribe to WSJ: http://online.wsj.com?mod=djnwires