Holdouts to block Heta exchange offer

摘要

Carinthia's proposed exchange offer to senior bondholders of heta asset resolution, the vehicle set up to wind down its former state bank Hypo Alpe Adria, has stalled after creditor groups signed a formal agreement last week to block any plans that would see them take a haircut on their claims. Last month, the Austrian province appointed JP Morgan and Citigroup as dealer-managers to run the exchange offer, targeting €11bn of senior unsecured debt guaranteed by Carinthia. The original plan had been to complete the exercise by the end of December.