September 14, 2016 / 11:12 AM / 2 years ago

BRIEF-Pharol CEO welcomes US SEC fine ruling, says removes uncertainties

Sept 14 (Reuters) - Pharol Sgps SA CEO Luis Palha da Silva says:

* Welcomes a relatively small fine of $1.3 million applied by the U.S. Securities and Exchange Commission (SEC) over investments by the company, formerly Portugal Telecom, in debt instruments of the now bankrupt Portuguese conglomerate Grupo Espirito Santo.

* “Pharol welcomes the decision and the agreement reached with SEC that puts an end to the process started by SEC and ends innumerous uncertainties and potential legal consequences for the company in the U.S. jurisdiction,” the CEO tells Reuters.

* “Although the sum can be considered small... it still is a burden for Pharol, which will do everything to get reimbursement from those responsible.”

* Portugal Telecom had put 900 million euros in Espirito Santo debt instruments, on which the latter defaulted in 2014.

* The company has sued its former top executives for the ruinous investment. Pharol now has no operating assets and merely owns a 27 percent stake in Brazil’s ailing telecom firm Oi, which has sought bankruptcy protection.

* Source text for Eikon: Further company coverage: (Reporting by Andrei Khalip, editing by Axel Bugge)

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