Whatever’s going on with Banco Espírito Santo—the collapse, the restructuring, the splitting into a good bank and bad bank with European (read: German) money, it certainly isn’t bankrupt, or at least not in a “bankruptcy event,” according to ISDA.

A panel of the International Swaps and Derivatives Association Wednesday ruled that the Portuguese central bank’s decision to break up Banco Espírito Santo won’t trigger a payout on insurance-like contracts linked to the stricken lender’s debt.

Banco Espírito Santo Ruled Not to Be in Bankruptcy Event [WSJ]

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