Heta Asset Resolution AG - FMA Österreich
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Heta Asset Resolution AG

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The Federal Act on the Recovery and Resolution of Banks (“BaSAG”), as published in the Austrian Federal Law Gazette I No. 98/2014 has been in force since 01.01.2015. It transposes the EU Directive on the Recovery and Resolution of Credit Institutions and Investment Firms (“BRRD”) in Austria, in which Directive assent has been given by Europe for new rules for the resolution of banks (the European bank resolution regime). It was an important aim of the European Union to relieve pressure on public budgets and consequently also taxpayers resulting from the costs of the resolution of a bank.

In accordance with BaSAG, the Austrian Financial Market Authority (FMA) assumed the function of the national resolution authority on 1 January 2015. The Federal Act on the Recovery and Resolution of Banks (“BaSAG”), as published in the Austrian Federal Law Gazette I No. 98/2014 has been in force since January 1st, 2015.
On March 1st, 2015, the Austrian Financial Market Authority (FMA) initiated the resolution of the „Heta Asset Resolution AG“ following the new European resolution regime. In order to be able to prepare the resolution plan according to the objectives of this new regime, the FMA imposed a deferral of liabilities by the Heta Asset Resolution AG against the creditors in accordance with BaSAG until May 31st, 2016.

In accordance with BaSAG, the Austrian Financial Market Authority (FMA) assumed the function of the national resolution authority on January 1st, 2015. The Federal Act on the Recovery and Resolution of Banks (“BaSAG”), as published in the Austrian Federal Law Gazette I No. 98/2014 has been in force since January 1st, 2015.

On March 1st, 2015, the Austrian Financial Market Authority (FMA) initiated the resolution of the „Heta Asset Resolution AG“ following the new European resolution regime. In order to be able to prepare the resolution plan according to the objectives of this new regime, the FMA imposed a deferral of liabilities by the Heta Asset Resolution AG against the creditors in accordance with BaSAG until May 31st, 2016.

The accompanying edict in accordance with BaSAG was published immediately on the FMA website. (in German only).

On April 10, 2016 FMA in its capacity as the Austrian resolution authority and in accordance with the BaSAG, issued an emergency administrative decision containing the basic parameters of the continued resolution of the Heta Asset Resolution AG.
The most important measure are:
• 100 % haircut on all subordinated liabilities,
• Reduction of the haircut from 53,98% down to 46,02% on all eligible priority liabilities,
• Cancellation of all interest payment as of March 1st 2015, once HETA had begun its resolution according to BaSAG,
• Unification of the maturities on all eligible liabilities until Dec. 31st, 2023.

FMA raises the fulfillment quota of HETA ASSET RESOLUTION AG to 86,32%; an additional interim payout can be anticipated this year

Vienna, Sep. 13th 2019
The Austrian Financial Market Authority in its capacity as the Austrian resolution authority has issued an administrative decision (Administrative decision in relation to the challenge procedure III / Vorstellungsbescheid III), where the fulfillment quota for eligible liabilities of the HETA ASSET RESOLUTION AG has been raised up to 86,32%. In the administrative decision in relation to the challenge procedure II (Vorstellungsbescheid II) the quota was only 64,4%. So far 7.8 Bill. Euros have been distributed in two interim payouts to the creditors.
It can be assumed that based on this new decision the HETA will apply for another substantial payout this year. To date the subordinated creditors will loose all their claim amounting to 1.9 Bill. Euro and the eligible claims of the creditors will be cut by 1.7 Bill. Euros, therefore the bail-in in a regulated resolution will add up to approx. 3.6 Bill. Euros.
The new European resolution regime has proved to be effective
„As hurtful and expensive the collapse of the Hypo Alpe Adria was as a banking group, the regulated resolution as HETA following the new European regime has kept the taxpayer’s burden as little as possible“, says the board of the FMA, Helmut Ettl und Klaus Kumpfmüller: „The new resolution instruments have proved effective. In 2015, when the HETA resolution was decided, the assets at the time were assessed to be 7.1 Bill. Euro. Under FMA’s regulated and value-preserving resolution so far more than 10 Bill. Euro were saved“.
So far, around 85% of all assets have been removed and realised in cash. According to the plan it should be 99% by the End of 2020.
Since the FMA has taken on the responsibility over HETA in March 2015, already 115 out of 168 subsidiaries have either been resolved or liquidated. In th esame period of time, the number of employees at HETA AG was reduced from 550 to 190, in the HETA network from 1800 to 400. Before resolution, when it was still Hypo Alpe Adria, the group consisted of approx. 7200 employees, 4200 thereof in the banking network in Southern- and Southeastern Europe.

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