Scott M. Grossman, judge responsible for the case, I determine that people and entities are prevented from initiating or continuing any action by Banco Master on North American soil
The court recognized this Thursday (8) the liquidation process of the and ordered the blocking of the institution’s assets in the country. “The Brazilian liquidation process will be fully forceful and effective and will be binding and enforceable in the United States against all persons and entities,” said Judge Scott M. Grossman of the Bankruptcy Court for the Southern District of Florida in his ruling.
According to the judge, the process is recognized as “a ‘main foreign proceeding’ and the Liquidator is recognized as the duly authorized foreign representative of the Debtors”.
Grossman determined that all people and entities are prevented from initiating or continuing with any action or process related to the assets, rights, obligations or liabilities of Banco Master in the USA, that is, the assets were blocked, a decision that is a setback for the bank’s owner, Daniel Vorcaro, who wanted to prevent this from happening by trying to block recognition by the American Court.
The decision, taken after hearing, in a Court hearing on Wednesday (7), the parties involved, responds to a request from EFB Regimes Especiais de Empresas, which is the Master’s liquidator appointed by the Central Bank (BC). With the endorsement, the company is now free to exercise its powers, hear witnesses, obtain evidence and information on business and assets of Daniel Vorcaro’s bank in the country.
On Wednesday (7), Vital do Rêgo, president of the Federal Audit Court (TCU),
“The Master’s ‘settlement’ process is not up to the TCU, it is up to the Federal Supreme Court, because there is an open process there,” he said.
What is liquidation?
Extrajudicial liquidation is a resolution regime available to the BC to deal with serious problems in financial institutions, in order to maintain the stability of the system. The measure interrupts the operation of the institution, removing it from the National Financial System (SFN). This means that the bank closes and ceases to operate.
