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Austria details resolution framework for Heta

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Austria details resolution framework for Heta

TheAustrian Financial Market Authority on April 10 announced the further steps forthe resolution ofHeta Asset Resolution AG,including a 100% bail-in of all subordinated liabilities and a 53.98% bail-in,resulting in a 46.02% quota, of all eligible preferential liabilities.

Theresolution framework also includes the cancellation of all interest payments fromMarch 1, 2015, when Heta was placed into resolution pursuant to the BankRecovery and Resolution Act, and the harmonization of the maturities of alleligible liabilities to Dec. 31, 2023. The FMA retains the option to makepartial payouts on a voluntary basis at an earlier date.

Accordingto the current resolution plan for the company, the wind-down process should beconcluded by 2020, although the repayment of all claims as well as the legallybinding conclusion of all currently outstanding legal disputes willrealistically only be concluded by the end of 2023, at which time it will bepossible to finally distribute the assets and to liquidate the company.

Heta'screditors may submit complaints to Austria's Federal Administrative Court inrelation to the administrative decision on the measures issued for the company'sresolution.

"[W]eare on target with the resolution of Heta and are also making satisfactoryprogress in relation to the realization of its assets," FMA co-headsHelmut Ettl and Klaus Kumpfmüller said.