HETA Asset Resolution AG, the wind-down company of the former Hypo Alpe Adria Group, passed a resolution at its general meeting held yesterday for a final distribution ahead of schedule of € 149.15 million for satisfying the claims of creditors holding eligible non-subordinated liabilities under the Bank Recovery and Resolution Act (BaSAG; Bankensanierungs- und Abwicklungsgesetz). As a consequence proceeds of € 10.85 billion have been realised from the disposal of assets during the course of the orderly resolution conducted in accordance with the rules set out under the new European resolution regime, which ultimately corresponds to 86.32% of claims being satisfied. When the task was conferred upon the FMA in 2015 for the orderly resolution of HETA, an expert opinion assumed proceeds of approx. € 7.3 billion in the case of a resolution under the then new rules, i.e. approx. 46.02% of claims being satisfied; the same opinion assumed that a mere 35% of claims would have been satisfied under insolvency proceedings. By approving this final distribution by the FMA in its capacity as the resolution authority, the financial wind-down of HETA in the form of portfolio wind-down has been concluded, and the condition for a liquidation under company law has been met. Any proceeds from this liquidation will also be distributed between the creditors of the eligible liabilities.
The new European banking resolution regime has proven itself
“As painful and costly as the failure of the Hypo Alpe Adria Group was, the new European resolution regime has already proven itself in this first reality test in terms of preserving assets and disposing of them under the best possible conditions,” remarked the FMA’s Executive Directors, Helmut Ettl and Eduard Müller, with the FMA in its capacity as the national resolution authority having had the task of the orderly disposal of assets conferred upon it: “As Immigon, the wind-down entity of the former leading institution in the Volksbank sector, has already successfully concluded its wind-down in the private sector, and KA-Finanz has been able to shorten its timeline for resolution to until 2023, the bank failures in Austria caused by the Global Financial Crisis of 2008, have therefore been by and large dealt with.”
Journalists may address further enquiries to:
Klaus Grubelnik (FMA Media Spokesperson):
+43/(0)1/24959-6006, or +43/(0)676/88 249 516