FMSWertmanagement AöR and Austrian Anadi Bank AG will accept a revised offer tobuy back debt instruments issued by the former Hypo Alpe-Adria-BankInternational AG, now Heta AssetResolution AG.
Under the revised offer, presented in early September, senior bondholders willreceive 75% of the face value of their bonds, which they can reinvest in afederal government-guaranteed long-term zero coupon bond. Junior bondholderswill receive 30% of the face value of their debt and are being offeredlong-term promissory notes for reinvestment.
Creditors can sell their new notes after 60 days. They areexpected to recoup 90% of their investment in the case of senior debt and 45%for junior debt.
A spokesman for FMS, a German federal government vehicle forwinding up the former Hypo Real Estate Holding AG, told Reuters on Sept. 28that the company's board opted to accept the offer. The company had filed alawsuit in pursuit of full repayment, the newswire noted.
Austrian Anadi Bank, formerly Hypo Alpe-Adria-Bank International's Austriandomestic subsidiary, said accepting the offer was seen "as the bestsolution for all parties involved," including investors, the countryitself and the province of Carinthia. The latter had provided guarantees on theroughly €11 billion in Heta debt, which threatened to bankrupt it if a solutionwas not reached.