Austria rules out Hypo Alpe Adria insolvency
VIENNA, March 14
VIENNA, March 14 (Reuters) - Austria has decided to bite the bullet and adopt a wind-down unit for ailing state lender Hypo Alpe Adria because letting the bank go bust posed incalculable risks, Finance Minister Michael Spindelegger said on Friday.
He told reporters that Hypo's home province of Carinthia had to take part in the costs, as did subordinated creditors and providers of non-voting participation capital but not senior bondholders. Talks on reaching an overall settlement with former Hypo owner BayernLB would start soon, he added.
Austria this week authorised a quick capital injection for the bank it nationalised in 2009 even though the exact amount it needs is not yet known. Hypo Alpe Adria has already got 4.8 billion euros ($6.7 billion)in state aid since 2008. ($1 = 0.7180 Euros) (Reporting by Michael Shields; Editing by Georgina Prodhan)