A group of creditors in Heta hired Gleacher Shacklock as financial adviser to assist in the negotiations with the Austrian government, according to sources familiar with the situation. The group which retained Kirkland & Ellis as legal adviser earlier this year will engage the government in talks over the restructuring of the vehicle for the resolution of Hypo Alpe Adria bank.
The creditor's group comprises a mix of hedge funds, banks and fund managers: BNG Bank, Canyon Advisers, Commerzbank, Cyrus, Farallon, FMS Wertmanagement, HSH, Knighthead, Pimco and Redwood Capital, the sources said. The group could represent as much as €4 billion of debt, as previously reported by Reorg.
Deloitte, Moelis, Blackstone and Perella Weinberg were among the firms that also pitched for a mandate to advise creditors in May, as reported by Reorg.
Including unsecured claims and other liabilities Heta has as much as €12.5 billion of debt to restructure, making it the largest financial restructuring in Europe.
A summary of Heta’s maturity schedule is as follows:
On June 9 a €260 million piece of Heta’s debt traded to a group of hedge funds at a price of 65. Morgan Stanley managed the trade. Since then other smaller pieces of debt traded in the low 60s.
Heta reported FY14 earnings in German and English last month.