Heta Law Wiping Out Junior Debt Declared Unconstitutional
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Austria’s Constitutional Court overturned a law that wiped out 800 million euros ($885 million) of junior debt owed by “bad bank” Heta Asset Resolution AG, saying some creditors were treated unfairly.
The claims by junior bondholders, which were guaranteed by Heta’s home province of Carinthia, will be reinstated and become subject to a debt moratorium imposed by Austria’s FMA regulator this year, court president Gerhart Holzinger told journalists in Vienna.