Heta Asset Resolution
Native name | Heta Asset Resolution A.G. |
|---|---|
| Public, A.G. | |
| Predecessor | "bad bank" of Hypo Alpe-Adria-Bank International |
| Founded |
1896 2014 (spin off) |
| Headquarters | 1 Alpen-Adria-Platz, Klagenfurt, Austria |
 (€496.2 million) (2015) | |
| Total assets |
 €11.1535 billion (2015) |
| Total equity |
(€5.7206 billion) (2015) |
| Owner | Austria (100%) |
| Subsidiaries |
|
| Website | Official website |
|
Footnotes / references in consolidated basis, excluding the 2016 bail-in effect[1] | |
Heta Asset Resolution is a "bad bank" that was spin off from the original Hypo Alpe-Adria-Bank International in 2014. It was owned by the Government of Austria.
The bank bad contained the leasing subsidiary of former Hypo Alpe-Adria-Bank Group in Austria, Italy, Bulgaria, Serbia, Montenegro and Macedonia[1] but not in Bosnia and Herzegovina, Croatia and Slovenia.[2]
History
After the collapse of Hypo Alpe-Adria-Bank International, the bank was split into a good bank and a bad bank in 2014, and the bad bank was renamed Heta Asset Resolution. It was intended to wind down the bad bank over a period of years.[3] The European Union had forbidden member states to provide state aid to make the market less compatible, thus the 2013 plan was redesigned in order to comply with EU law.[4] The General Court also ruled that the guarantee granted by Austria to BayernLB in 2009 during the nationalization was a state aid (SA.28487) but nevertheless compatible with EU law.[5]
In October 2014 Italian Guardia di Finanza started an investigation on the leasing department of the Italian subsidiary. The department was remained in the "bad bank" as Heta Asset Resolution Italia S.r.l..[6]
On 1 March 2015 the Financial Market Authority of Austria imposed a moratorium on debt and interest payments by Heta Asset Resolution on unguaranteed debt. It was due to Austrian Federal Act on the Recovery and Resolution of Banks (BaSAG German: Bundesgesetz zur Sanierung und Abwicklung von Banken) was came to effect, an Austrian transpose of EU Bank Recovery and Resolution Directive (BRRD). An audit also found that Heta had a capital shortfall of up to €7.6 billion.[7] The Financial Market Authority would draw a new resolution plan for the bad bank in order to be in line with EU law. Financial Market Authority was the "national resolution authority" of this mechanism.
On 8 May 2015 The Munich I Regional Court obligated HETA to pay BayernLB €1.03 billion and CHF 1.29 billion plus interest. On 7 July 2015 Austria and Bavaria signed a memorandum of understanding which confirmed BayernLB was the one of the non-subordinated, unsecured creditors for €2.4 billion. Austria would pay Bavaria €1.23 billion in advance for HETA. (It may be reimbursed due to ongoing court proceeding.[8]) Previously Austria, BayernLB and Bavaria sued each other for the responsibility of the debt, which BayernLB was a shareholders of the bank.[9][10]
Dexia announced in February 2016 they would suffer another loss due to the moratorium.[11]
In 2016 Carinthia, the provider of the state guarantee, offered a debt hair-cut to buy the senior bonds for 75% face value and 30% face value for subordinated bonds.[11]
References
- 1 2 "2015 Annual Financial Report" (PDF). Heta Asset Resolution. 29 April 2016. Retrieved 1 May 2016.
- ↑ "2014 Konzern-Geschäftsbericht" [2014 Annual Report] (PDF) (in German). Hypo Group Alpe Adria. 28 May 2015. Retrieved 21 February 2016.
- ↑ Michael Shields (2014-12-23). "Austria sells Hypo Balkans network to private equity firm Advent". Reuters.
- ↑ "State aid: Commission approves plan to orderly wind down Hypo Group Alpe Adria". European Commission. 3 September 2013. Retrieved 24 April 2016.
- ↑ "The General Court confirms that the guarantee granted by Austria to BayernLB in the context of its restructuring concerning BayernLB’s credit lines in favour of Hypo Group Alpe Adria constitutes State aid which is nevertheless compatible with EU law" (PDF). General Court of the European Union. 28 January 2016. Retrieved 24 April 2016.
- ↑ "Hypo-Alpe-Adria Bank, software truccati per lucrare sull’Euribor: la Finanza scopre truffa da 88 milioni" (in Italian). Il sole 24 ore. 25 October 2014. Retrieved 22 February 2016.
- ↑ "Austria imposes debt moratorium on Heta "bad bank"". Reuters. 2015-03-01.
- ↑ "Information for Creditors and Investors" (PDF). Heta Asset Resolution. 6 November 2015.
- ↑ Weber, Webb & Comfort, "A" (7 July 2015). "Austria to Pay Bavaria 1.2 Billion Euros in Heta Deal". Bloomberg Business. Retrieved 10 July 2015.
- ↑ "Implementation of the Memorandum of Understanding of 7 July 2015" (PDF). Heta Asset Resolution. 21 September 2015. Retrieved 8 March 2016.
- 1 2 "Dexia Group Consolidated Results 2015" (PDF). Dexia. 19 February 2016. Retrieved 22 February 2016.