Austria’s government-owned Hypo Alpe-Adria-Bank International has been split between a wind-down unit named Heta Asset Resolution, and its southeastern European network of banks.
The move is part of the bank’s restructuring plan which has been approved by the European Commission, reports the Wall Street Journal.
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As part of the plan, the government will have to sell off all of the bank’s assets or transfer them into a wind-down unit by the middle of next year.
The southeastern European network of the lender, which comprises six banking units across five countries and includes assets worth nearly 8.4bn, has already been transferred to SEE Holding.
Alexander Picker, the bank’s chief executive, and fellow board member Rainer Sichert have stepped down from their posts and will move to SEE Holding.
The rest of the assets of the bank have been transferred to Heta Asset Resolution to be wound down, though Heta Asset Resolution does not have a banking license yet, and a chief executive is yet to be selected for the new company.
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By GlobalDataAs of now, the remaining board members of Hypo Alpe-Adria, Johannes Proksch and Rainer Jakubowski, will form the executive board of the new company.
Hypo Alpe-Adria had earlier announced plans to sell SEE Holdingto a consortium between the private-equity firm Advent International and the EBRD, which is subject to regulatory approval.
