This page contains a list of frequently asked questions about the interim distribution by HETA.
The resolution of HETA by the FMA is on schedule. Within two years EUR 5.0 billion of the EUR 7.1 billion of assets available in March 2015 (excluding cash holdings) have already been disposed of by sale. The cash reserve of HETA as the basis for the sum of money made available for distribution to the eligible creditors has increased during the same time from € 2.5 billion to € 8.5 billion.
HETA therefore made use of the possibility that exists in accordance with its statutes to make an interim distribution prior to the maturity of the liabilities, and therefore decided to distribute part of its available liquidity to the creditors earlier than originally expected.
The list of liabilities that serves as the basis for the administrative decision in relation to the challenge procedure issued by the FMA on 02.05.2017 serves as the authoritative list for the interim distribution. Following the expiry of the time limit for the appeal against the FMA’s administrative decision in relation to the challenge procedure of 02.05.2017, an important milestone in the procedure has been reached: during the appeal stage, it would have been possible for an appeal to have been lodged in relation to the completeness of the list of liabilities. This did not happen.
No. The interim distribution was decided upon by the bodies of HETA under private law on the basis of a separate decision. In accordance with HETA’s articles of association and rules of procedure, such decisions by means of a resolution require evaluation (non-prohibition) and approval by the FMA. The necessary non-prohibition and approval were granted by the FMA on 30.06.2017.
The amount that shall now be distributed of 69 % of the eligible liabilities that were subjected to a haircut to 64.4 % by means of the administrative decision in relation to the challenge procedure of 02.05.2017 is calculated using HETA’s available liquidity as at the qualifying date of 31.05.2017. From this amount, expected future pay-outs such as for non-eligible liabilities or new liabilities, as well as potential future pay-outs such as for additional losses arising from judicial proceedings and negative effects arising from foreign currency performance among other items are deducted. The remaining amount serves as the basis for the calculation of the distribution ratio in relation to all eligible liabilities.
The distributable amount must in any case be determined in such a way that the resolution of HETA, its ongoing business operations as well as the satisfying of claims of creditors in the future is not placed at risk. i.e. HETA must in any case still hold back adequate cash reserves in order to not place the resolution process at risk.
All creditors of eligible liabilities with the exception of those creditors of subordinated liabilities shall participate in the interim distribution. The former holders of capital instruments shall also not be included in the current distribution.
Where there are eligible liabilities involved that are contentious or uncertain (see point II.3 of the ruling of the administrative decision in relation to the challenge procedure of 02.05.2017), any pay-out may only be made once the underlying circumstances have been resolved in a legally binding manner.
The amounts that are not paid out immediately shall be continue to be administrated by HETA and shall be invested separately from their remaining cash reserve.
Non-eligible liabilities and new liabilities shall continue, as was previously the case, to be paid out by HETA upon maturity.
HETA plans to technically conduct the pay-out during the second half of July 2017. Contested or uncertain claims shall only be paid out once the underlying circumstances have been finally settled, e.g. on the basis of a court judgement.
HETA has set up an e-mail address firstname.lastname@example.org, to which enquiries may be sent at any time relating to the interim distribution.
Objections against the interim distribution should be sent to HETA. Since the interim distribution is being conducted under private law, there is no opportunity to appeal to the FMA about it.
The possibility of making further interim distributions exists, provided that the conditions set out in the articles of association are met. Whether and to what extent further interim distributions may occur depends on HETA’s further successful results in relation to the wind-down as well as the available cash. It is not possible to say at the moment whether HETA will conduct interim distributions in 2018 or the years that follow.
No, the timeframe for wind-down in accordance with the wind-down plan remains unchanged – 2023. The effects of the administrative decision in relation to the challenge procedure of 02.05.2017 therefore remain fully intact.
The interim distribution does not have any effect on ongoing procedures. The appeal procedure continues to be heard by the Federal Administrative Court (BVwG; Bundesverwaltungsgericht).