The Ad Hoc Group (the AHG) represents 11 institutions holding senior notes issued by Hypo Alpe-Adria-Bank International AG (HAA) of a face value of approximately €2.6bn, which are backed by a statutory guarantee from the Province of Carinthia. It is the largest association of HETA creditors seeking to recover their investments which are classified under Austrian law as risk-free, gilt edged investments, or so-called mündelsicher (§ 215 ff. ABGB). The reliance on Carinthia’s statutory guarantee was also reflected in the lower rate of interest on the bonds.
Since March 2015, the AHG has consistently sought to engage in constructive discussions with the Republic of Austria, the Austrian Ministry of Finance, the Austrian Financial Market Authority (FMA), Carinthia, and their respective financial advisers, to negotiate a consensual solution to HETA’s financial problems; the AHG has been unsuccessful at every juncture.
- December 2009
Austrian bank Hypo-Alpe-Adria-Bank International AG (HAA) was nationalised after concerns over a collapse, after suffering heavy losses in central Europe.
- September 2013
The European Commission approved a plan for the orderly wind-down of HAA.
- July 2014
- With the Hypo special law passed in the Austrian National Assembly in July 2014, the basis for the deregulation and creation of a wind-down entity became effective.
- HypoAlpeAdria-Sanierungs-Gesetz“ (HaaSanG) (Hypo Reorganisation Law) (“HaaSanG”) adopted, which voided deficiency guarantees issued by Carinthia on €890m of HAA subordinated debt.
- November 2014
The wind-down entity of the HAA operates under the name Heta Asset Resolution AG (“HETA”) since November 2014. HETA is in the RoA’s ownership at 100%. HETA’s responsibility is to manage its assets with the objective to ensure an organized, active and optimized realization.
- March 2015
- HETA was found to have a deficit of €7.6bn.
- The Austrian Minister of Finance Hans-Jörg Schelling discloses that the owner won’t take any further measures after the Financial Market Stability Act.
- The FMA ordered a 15 month moratorium on the debt securities and liabilities issued by HETA until May 31, 2016.
- August 2015
The Austrian Constitutional Court declared HaaSanG ‘unconstitutional’ and repealed it, reinstating the guarantees issued by Carinthia on €890m of HAA subordinated debt and on €800m of loans from BayernLB.
- September 2015
The Austrian government finalised a bill preparing a legal framework for a settlement with the German state of Bavaria by paying €1.23 billion, or 45 percent of Bavaria’s claims.