The Austrian Financial Market Authority (FMA) today approved subsequent to a resolution to this effect being passed by the general meeting of HETA ASSET RESOLUTION AG (HETA) to make a further interim distribution to HETA’s creditors of € 2.4 billion. The payment will be made at the start of July, with the payments for uncontested claims totalling € 1.9 billion being directly transferred, while for claims that are contested approximately € 0.5 billion will be transferred to a separate account and shall only be released for repayment once the disputed legal issue has been resolved in favour of the creditor. Once this has occurred, HETA will have already distributed a total € 8.2 billion to creditors ahead of schedule, which corresponds to approximately 98% of the non-subordinate eligible liabilities upon which a haircut was imposed by means of an administrative decision. The remaining portfolio of liquid funds, which currently stands at € 1.4 billion, is sufficient, even when applying very conservative estimations, to cover the outstanding legal risks as well as further resolution costs. The external valuation report, upon the basis of which the FMA issued the first administrative decision to apply a haircut to claims of creditors, assumed maximum proceeds for creditors following the conclusion of resolution in 2023 of approx. € 6 billion. As a result of the successful resolution jointly by the FMA and management of HETA it has already been possible by 2018 to distribute € 2.2 billion more by means of an interim distribution than had originally been expected in total.
“The resolution of HETA under the newly created European legal framework is a success story. Resolution has taken place in an orderly manner, while also ensuring that remaining assets have been protected and maintained. The proceeds from sale are significantly highly than was planned,” according to the FMA’s Executive Board members, Helmut Ettl und Klaus Kumpfmüller: “We have also demonstrated that the new European legal framework is also capable of withdrawing fails banks from the market in a way that does not endanger financial market stability and while protecting tax payers as far as possible.”
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson)
+43/(0)1/24959-6006
+43/(0)676/882 49 516