Ithuba Capital acted as financial advisor to the Republic of Austria in the course of the recently implemented agreement with creditors of Heta Asset Resolution (the wind-down unit of former Hypo Alpe-Adria International) and the related capital markets transactions for a total volume of approximately EUR 10.9 billion. Ithuba Capital is delighted to have been involved in structuring and executing these transactions which represent the first successful partial bail-in of creditors holding debt of a failed bank benefitting from a statutory guarantee by a European sub-sovereign entity. The offer of Kärntner Ausgleichszahlungs-Fonds, which had been pre-negotiated upon the initiative of and was now financed by the Republic of Austria, was accepted on 7 October 2016 by an overwhelming creditor majority of 98.7% of affected debt instruments, thereby eliminating potentially devastating liabilities of the Province of Carinthia.
Heta is a wind-down unit and since 1 March 2015 in the process of resolution according to BaSAG (the Austrian implementation of the EU Bank Recovery and Resolution Directive). In the course of this transaction the Republic of Austria acted through the Ministry of Finance and ABBAG – Abbaumanagementgesellschaft des Bundes. Ithuba Capital is a private and independent securities firm located in Vienna, specializing in restructuring financial institutions and the disposal of wind-down portfolios.