Heta creditors, Carinthia agree on key points for settlement-sources
May 12 The Austrian province of Carinthia and creditors of Austrian "bad bank" Heta have reached an agreement in principle in a dispute over the repayment of billions of euros of bonds, two sources familiar with the situation said.
"The key points are agreed on," one source who declined to be named said on Thursday.
Both parties had signalled readiness to compromise in the long-running dispute about the repayment of bonds guaranteed by the province after Austria's banking watchdog imposed a big haircut on the bonds. Bondholders include Pimco , Commerzbank and Deutsche Bank.
The online version of the Krone newspaper in Carinthia reported the agreement was based on repayment of 92 percent of outstanding bonds, without citing sources.
Spokeswomen for the finance chief of the Austrian province of Carinthia, for the Austrian finance ministry and for the umbrella group of creditors, which claims to represent nearly half the value of the bonds in question, declined to comment.
A spokesman for Heta also declined to comment.
(Reporting by Kirsti Knolle, Shadia Nasralla; Editing by Michael Shields)