By Andrea Hargraves 
The auction is being held after a court ruling issued on February 29 decided to prove the insolvency of Paolo Malo.
The property that was owned by Paolo Mallo and the Armilar Venture Partners funds and which lost the clinics, in the process of execution by Novobanco, which then sold it to the Atena Equity Partners fund, is offered for sale by the insolvency administrator, on the platform of ordering lawyers and enforcement agents, created to guarantee payment. (Forcible) for previously recognized debts.
This forced sale of Malo Clinic Group SGPS shares results from a write-off carried out as part of the dentist businessman's personal insolvency process.
According to the platform, “74,999,999 shares are being sold on the electronic auction portal until next Wednesday.” [cerca de 75 milhões de ações] of Malo Clinic Group SGPS, with a nominal value of €1 per share”, by the group's insolvency administrator, which was 75% owned by Paolo Malo and 25% owned by funds managed by Armilar Venture Partners.
The proceeds of the sale will go to the insolvent company Maló Consulting e Management Unipessoal Lda.
The base value of the auction for the bankrupt company's shares is 37.5 thousand euros, the opening value is 18.75 thousand euros, and the minimum bid value is 31.875 thousand euros. But there is no guarantee that there will be offers.
The auction takes place after a court ruling, issued on February 29, decided to establish Paulo Malo's bankruptcy, because he “created or artificially aggravated obligations or losses, or reduced profits, causing, in particular, the debtor to celebrate bankruptcy.” Destructive transactions in their favor or in the interests of people particularly connected to them,” Jornal de Negosios reported.
The court described Paulo Sergio Mallo de Carvalho's insolvency as “criminal” and issued a decision “barring him from managing third-party assets, engaging in trade and from holding any position as president of a commercial or civil society body, association or private foundation.” The basis of economic activity is a public company or cooperative for a period of six years.
This company used to own Maló Dental Clinics, but has no longer owned them since 2019, having later returned with Maló Dental.
After Novobanko executed the uncollectible loan and took control of the company, it sold it to venture capital firm Atena Equity Partners.
A special revitalization followed, supported by a €40 million debt relief by bank creditors, including the bank born from the BES decision.
Atena subsequently acquired 100% of Malo Clinic's capital from the company owned by Paolo Malo, 75% of which, and 25% of funds managed by Armilar Venture Partners.
Among the 19 creditors, Novobanko stood out, agreeing to forgive more than half (25 million) of them by approximately 80%.
Ordinary creditors suffered losses of 90%. This was the case for Caixa Geral de Depósitos, which recovered 10% of $6.9 million. Social Security received $1.7 million in appropriations for Maló Group.
Joint creditors included Sporting SAD, Loulé City Council, Sociedade de Advogados PLMJ or Guimarães.
In 2019, the group achieved a ten-year deferral, including a two-year grace period, on debt repayment, which was then reduced to 27 million euros.
In addition to debt relief, the public expenditure report also included the closure of clinics, not only abroad, where problems were identified, but also in Portugal.
The doctor and businessman provided personal guarantees to cover the financing for his companies, allowing Novobanco and CGD to proceed with the implementation of the personal assets.
But on October 6, 2021, Paolo Malo's personal bankruptcy was declared, at the request of the “Kaisha” company, which had been trying for several years, unsuccessfully, to collect a debt of more than eight million euros to the famous dentist.
At that time, Paolo Malo proved in court “that he had no assets or income and expressly assumed his inability to repay the debt” to CGD.
Through the search conducted by the enforcement agent, dated March 23, 2021, “it was found that there were no assets subject to seizure and that the last known and declared remuneration dates back to October 2019, in the amount of 29,042.11 euros,” according to reports from the court case cited by Negócios. The same news reported that, following the request submitted by several creditors, including CGD, the Judicial Court of the District of Lisbon will issue a decision to open an “insolvency rehabilitation incident” for Paulo Malo, now that he has declared himself “guilty, for dissipation of funds, hidden income and breach of the duties of the bankrupt.” “.
Maló Clinic had accumulated debts of €70 million, before the PER action forced the dismissal of the company's founder.
Celebrating almost five years after the acquisition, for €4 million, by private equity fund, Atena Equity Partners, Maló Clinic currently operates with five clinics in Portugal and one in Warsaw, the capital of Poland. In 2023, it trained doctors from more than 30 countries.
Sales grew in 2023 and the clinic managed by the Atena Equity Partners fund will report positive results for 2023.