According to newspaper Público, at stake are €500 million in credit, loaned by banks BCP, Novo Banco, and Caixa Geral de Depósitos to the Madeira-born investor, which he reportedly used, among other things, to buy a seven percent share in BCP in 2007.
A large part of the investment, Público reports, was used to buy shares that served as collateral.
The newspaper says the financial institutions are trying to reach an agreement with Joe Berardo, in a bid to avoid proceedings reaching court, where they could drag on.
The trio have therefore instructed 75 percent of the Berardo Foundation Association, which, in turn, owns the art collection on show in the Belém Cultural Centre, be seized to repay the debt.
In 2007, the Berardo collection was evaluated by auction house Christie’s as being worth in the region of €316 million.