HETA: Republic of Austria’s attempt at improvement still disregards economic and legal realities
A large group of creditors who hold or control more than EUR 5 billion of gilt-edged debt securities of HETA ASSET RESOLUTION AG covered by the tender offer launched on 21 January 2016, by the Carinthian compensation payment fund, welcomes the fact that for the first time, the additional offer acknowledges the entitlement to a full repayment of the creditor’s claims.
The additional offer, which was only made shortly before the expiry of the tender offer period, still falls short of the obligation to repay in full the creditors’ claims. Under current market conditions, the repayment would not be 100% as communicated, but far below it and, due to market conditions, the market value of the zero coupon bonds could even be below the initial cash offer of 75%. Thus, the additional offer also fails to present a definite solution to the HETA problem and the securities guaranteed by the Province of Carinthia; the tender offer and the additional offer is still not acceptable for the creditors. A precedent cannot be set where creditors acquire gilt-edged and statutory guaranteed securities issued by Carinthia and subsequently – as a result of political pressure – have to waive part of their claims. The creditors have fiduciary obligations in managing the assets entrusted to them and must therefore act accordingly.
The tender offer will fail, since the Province of Carinthia refuses to accept its liability or honour its obligations. The offered amount of EUR 1.2 billion does not represent in the slightest Carinthia’s assets and economic capacity. It is unacceptable that Carinthia shows no willingness to enter into discussions or be involved in a constructive solution. The resulting delay in finding a solution has already led to additional costs in the form of default interest of more than half a billion Euros annually, which are increasing daily.
The creditors continue to show interest in a constructive solution and remain available to have fair and constructive discussions with the Republic of Austria and the Province of Carinthia.
Ecker & Partner
Rosam Change Communications
Information om Business Wire
101 California Street, 20th Floor
CA 94111 San Francisco
Følg pressemeddelelser fra Business Wire
Skrive dig op her og du vil løbende modtage pressemeddelelser på mail. Indtast din mail, klik på abonner og følg instruktionerne i den udsendte mail.
Flere pressemeddelelser fra Business Wire
PA-BRIGHTLINE-INITIATIVE19.1.2018 22:15 | pressemeddelelse
The Brightline Initiative, Project Management Institute and The Boston Consulting Group Host The Economist Events for Davos Panel
NJ-SOLIDIA-TECHNOLOGIES19.1.2018 19:09 | pressemeddelelse
New US Patent for Solidia Technologies’ CO2-cured Concrete Advances Performance and Sustainability of Building Materials
TX-SCHLUMBERGER-LIMITED19.1.2018 13:02 | pressemeddelelse
Schlumberger Announces Full-Year and Fourth-Quarter 2017 Results
GA-THE-COCA-COLA-COMPANY19.1.2018 12:57 | pressemeddelelse
The Coca-Cola Company Announces New Global Vision to Help Create a World Without Waste
KING-FAISAL-FOUNDATION19.1.2018 11:36 | pressemeddelelse
Researchers and Scientists from Five Countries Named Winners of King Faisal Prize 2018
CA-E.ON/CORINEX19.1.2018 07:02 | pressemeddelelse
E.ON Chooses Corinex Broadband over Powerline Technology for their Smart Metering Rollout
I vores nyhedsrum kan du læse alle vores pressemeddelelser, tilgå materiale i form af billeder og dokumenter, og finde vores kontaktoplysninger.Besøg vores nyhedsrum