Deloitte NCWO Report - Full and Redacted
The BRRD regime requires that no shareholder or creditor will be left worse off after the use of resolution tools than they would have been had the whole entity been placed into an insolvency proceeding. A ‘no creditor worse off’ ("NCWO") valuation of the entity at the point of resolution is prepared by an independent valuer in order to check whether any shareholders or creditors have received less from the resolution than they would have recovered from an insolvency. Where there is a shortfall, shareholders and/or creditors are entitled to compensation to close the gap. Banco de Portugal instructed Deloitte to conduct a valuation of BES and prepare a NCWO report. The Noteholder Group has requested a copy of the report in order to consider and evaluate the valuation. Banco de Portugal has to date, and contrary to court orders, failed to provide an unredacted version of the NCWO report. A copy of the unredacted executive summary and a copy of the redacted NCWO report are below.