Investors in Heta Asset Resolution AG will meet lawyers for the province of Carinthia to find a way out of the Austrian bad bank’s debt stalemate after it became a test case for a new European Union law allowing losses to be shared with senior creditors.
Legal teams for bondholders and Carinthia, which guaranteed 11 billion euros ($12.5 billion) of Heta’s debt, will meet in London on Tuesday, the province’s governor, Peter Kaiser, said on Monday. The talks come as the first cracks appear in the united front of Heta’s investors demanding full repayment.
