ich hoffe besser lesbar....Avoiding Heta’s insolvency also means that the Carinthia province’s guarantees for Heta’s bonds aren’t triggered under Austrian law, the finance ministry said. The ministry reiterated that it will honor a federal government guarantee for a 1 billion-euro subordinated Heta bond, should it become due.

Austria On Track to Bail in Heta Creditors After Aid Stop
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by Boris Groendahl
6:46 PM CET
March 1, 2015
 


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(Bloomberg) -- Austria won’t give fresh capital to Heta Asset Resolution AG, making the “bad bank” of failed Hypo Alpe-Adria-Bank International AG the first case under new European Union rules imposing losses on bank bondholders.
Austria cut off support for Heta, which has already cost Austrian taxpayers about 5.5 billion euros ($6.2 billion) in aid, after Heta notified the government it may need as much as 7.6 billion euros on top of that, the Finance Ministry said in a statement on Sunday. The Finanzmarktaufsicht regulator put Heta into resolution and ordered an immediate debt moratorium.
“The decision was triggered by information from Heta’s management about the first results of an asset review,” the ministry said. “Because of that dramatic change of the asset evaluation, the ministry together with the entire government decided not to invest any more tax money into Heta.”
Heta’s predecessor Hypo Alpe was nationalized in 2009 after it was close to collapse because of bad loans in the western Balkans and shareholders led by Bayerische Landesbank walked away from the bank. Its rescue and wind-down has been complicated by a string of court cases and by the fact that a large part of its debt is guaranteed by the Carinthia province, a former owner of the bank.
No Repayment
The FMA is taking over the wind-down of Heta, which kept around 18 billion of Hypo’s assets when it was set up last year. While it works out a resolution plan it won’t repay Heta’s liabilities under an Austrian law that came into force Jan. 1 to implement the European Union’s Bank Recovery and Resolution Directive, the authority said in a statement.
The immediate debt moratorium means 950 million euros of bonds due March 6 and March 20 won’t be repaid. It affects 9.8 billion euros in outstanding bonds, supplementary capital and Schuldschein loans, 1.24 billion euros debt to Pfandbriefbank (Oesterreich) AG, a bank that handles bond issues for Austrian provinvial banks, as well as loans from BayernLB, according to the FMA’s decree published on its website.
Putting Heta into resolution means there is no insolvency procedure, the FMA said. An insolvency would have endangered the sale of Hypo Group Alpe Adria AG, the “good” part of the business that’s operating banks in the former Yugoslavia, which was signed last year but isn’t completed yet, it said. An insolvency would have made the sale of Heta’s remaining assets more difficult and led to higher losses for creditors, it said.
Government Guarantee
Avoiding Heta’s insolvency also means that the Carinthia province’s guarantees for Heta’s bonds aren’t triggered under Austrian law, the finance ministry said. The ministry reiterated that it will honor a federal government guarantee for a 1 billion-euro subordinated Heta bond, should it become due.
The FMA’s intervention caps a dramatic development over the weekend that is described in the authority’s decree.
Heta notified the FMA Friday night at 9:20 p.m. Vienna time that an asset review that started last year led to write-down needs of as much as 8.7 billion euros, resulting in negative equity of up to 7.6 billion euros. It wouldn’t have enough funds to repay liabilities from next year, Heta told the FMA, according to the document.
Shortly after that notification Friday night, Heta and the FMA notified the Austrian government and asked whether it would recapitalize Heta to make sure the liabilities are repaid. It answered at 12:24 p.m. today that it wasn’t going to, according to the document.
To contact the reporter on this story: Boris Groendahl in Vienna at bgroendahl@bloomberg.net
To contact the editors responsible for this story: Patrick Henry at phenry8@bloomberg.net Robin Stringer