Heta has reported having a capital hole of 8.1 billion euros at the end of June. The offer made to creditors will be based on elements including the amount recoverable for Heta's assets and Carinthia's yet-to-be-determined ability to contribute funds.

Industries | Wed Oct 21, 2015 5:48am EDT

Related: FINANCIALS

UPDATE 1-Austrian 'bad bank' Heta expects to have 6.3 bln euros cash in 2020

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Oct 21 (Reuters) - Austrian "bad bank" Heta Asset Resolution expects to have about 6.3 billion euros ($7.2 billion) in cash in 2020 from winding down its assets, it said in a presentation posted on its website on Wednesday.

Heta was created from failed lender Hypo Alpe Adria, a regional bank that expanded rapidly with the help of bond guarantees from its home province of Carinthia.

Austria and Carinthia are seeking to draw a line under the burden on their finances by offering to buy Heta creditors' bonds covered by 11 billion euros in guarantees.

Heta has reported having a capital hole of 8.1 billion euros at the end of June. The offer made to creditors will be based on elements including the amount recoverable for Heta's assets and Carinthia's yet-to-be-determined ability to contribute funds.

"The total cash holding in the year 2020 is assumed to be 6.3 billion euros," Heta said in the presentation, which was aimed at answering investors' questions.

Heta is aiming to wind down roughly 80 percent of its assets by the end of 2018 and all of its assets by the end of 2020, according to the presentation. www.heta-asset-resolution.com ($1 = 0.8798 euros) (Reporting by Francois Murphy, Shadia Nasralla and Alexandra Schwarz-Goerlich; Editing by Greg Mahlich)

http://www.reuters.com/article/2015/10/21/heta-plan-idUSL8N12L1WC20151021