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Austria: EU to decide fate of Hypo Alpe state aid this week, sources say

By  |  August 31, 2013

The European Commission is set to decide the fate of nationalized lender Hypo Alpe Adria, based in Austria, and whether it can accept the state aid that has thus far been keeping the company operating, sources told reporters.

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    The company has received nearly $4 billion in state aid and is now requesting approval for its reorganization plan, which was revised to meet the Commission’s requirements. One source says the watchdog will accept the new plan without major changes.

    Hypo Alpe’s restructuring plan currently involves divesting its Bakans banking operations by mid-2015 as well as downsizing a unit in Italy. The company has reportedly already agreed to sell its Austrian unit.

    European Commissioner Joaquin Almunia threatened to shut the company down altogether.

    Full Content: Reuters

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