Austria to Ask Heta Creditors to Take Voluntary Losses
This article is for subscribers only.
The Austrian government will try to convince Heta Asset Resolution AG’s creditors to accept voluntary losses as it winds down the bad bank of failed Hypo Alpe-Adria-Bank International AG under new European Union rules.
Chancellor Werner Faymann said on March 3 that Austria’s financial regulator, which is running Heta, will seek talks with creditors on the debt reduction, which could take place by way of a discounted bond buyback. A buyback or agreed debt cuts with investors would help to take the Carinthia provincial government, Heta’s former owner, off the hook for 10.2 billion euros ($11.4 billion) of guarantees.