Deutsche Pfandbriefbank expects to restructure Heta debt via buybacks

By Susanna Moon

Chicago, May 18 – Deutsche Pfandbriefbank AG expects to restructure the bulk of the liabilities of Heta Asset Resolution AG under a memorandum of understanding as one of its largest creditors, along with the Republic of Austria.

Under the terms, the parties confirmed Kartner Ausgleichszahlungs-Fonds will make a buyback offer to Heta creditors for the debt they hold in the company, according to a press release by EQS Group AG.

If the offer is carried out, it would result in a non-recurring pre-tax gain of €132 million for the group, which is expected to be recognized during the financial year 2016.

“The parties confirmed their joint intention to achieve an amicable agreement regarding the restructuring of these Heta liabilities, which are covered by a guaranty of the Federal State of Carinthia,” the release said.

Pfandbriefbank provides commercial real estate financing for builders and developers, real estate funds, real estate investors, and leasing companies. The company is based in Munich.

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