Hypo Alpe Adria Bank guarantee, offered a debt hair-cut to buy the senior bonds for 75% face value and 30% face value for subordinated bonds. On 4 August 2016, a private equity fund advised by Bain Capital purchased Heta Asset Resolution Italia S.r.l. (former Hypo Alpe-Adria Leasing S.r.l.) from Heta. During the year, Financial Market Authority also made a debt hair cut using the power as a resolution authority of EU "Bank Recovery and Resolution Directive", making the bad bank had a positive equity for the first time. Hypo Alpe Adria Bank Heta Asset Resolution A.G. is a "bad bank" that was the residual
Report on a National Bank not exceed $10 million (exclusive of deposits), and to assure compliance with government rules of incorporation. Certificates of indebtedness – i.e. government war time debt – had been paid with government securities at face value plus arrears of interest under the terms of Hamilton’s First Report on the Public Credit. The new securities were accepted by the Bank to purchase its stock, up to three-quarters (75%) of the value. Based on the collateral of these securities, new Bank notes were issued, producing a dramatic increase in the money supply and serving as the principal circulating medium – the “legal tender”