Hypo Alpe-Adria-Bank intends to avoid further losses with General Partners
Nevertheless two-figure improvements to results expected – any losses are no problem for the Hypo – everything already value adjusted
Negative chain of events around the General Partners Group
Klagenfurt, July 17, 2001. After the Hypo Alpe-Adria-Bank has called in the Supervisory Authority with respect to one of the banks closely related to the General Partners Group – the former WMP Bank which is now known under the name of General Commerce Bank - as early as in October 2000, the suspicions around the GP Group, which is active in the field of real estate, brokerage and investment management, are becoming stronger. In order to prevent or limit losses for both lenders and investors, the Hypo Alpe-Adria-Bank AG has filed a statement of the facts of the case with the Klagenfurt State Attorney’s Office. ”Despite this case, we will still achieve a record result in the current year, and the provisions set aside for the GP Group will be easily dealt with and will not affect the planned results;” emphasises Dr. Kulterer.
As the media reported months ago, a number of Austrian banks are in business relationships with the General Partners group of companies and have receivables outstanding. A number of inconsistencies have now occasioned the Hypo Alpe-Adria-Bank to notify the State Attorney’s Office. For the Chairman of the Executive Board, Dr. Wolfgang Kulterer, the prime focus is on the protection of the customers while at the same time preventing further losses to Austrian banks. The Hypo Alpe-Adria-Bank AG is primarily concerned about the clarification of the matter, now that the GP Group is no longer satisfying its obligations to the bank. The Hypo Alpe-Adria-Bank has no interest whatsoever in taking over the Group or a part of it, as alleged by Wolfgang Köstner, who is regarded as the central person within the Group. On the contrary, the Hypo ceded a loan commitment with the WMP Bank at the beginning of the year and terminated the business relationship with this enterprise.
The move by the Hypo Alpe-Adria-Bank AG is only one further step in a long chain of events that extends from the imposition of state supervision on the WMP Bank, the suspension of stock exchange trading, liquidity problems, GP Immobilien’s petition for bankruptcy, the filing of a statement of the facts of the case to the Vienna State Attorney’s Office by a major Austrian bank and disputes with former managerial staff, to a petition for the attachment of Schloss Freyenthurn. The measure taken by the Hypo Alpe-Adria-Bank is also justified by the fact that the GP Group has failed to comply with its obligations and that the calling in of receivables outstanding has had no effect.
The General Partners Group was in the past also active on the Austrian capital market and issued papers that were subscribed by both institutional and private investors. In addition, the shares of some of the companies are listed on the Vienna Stock Exchange. Whether investors will be affected by any illegalities will depend on the further development of the case. GP Group securities have probably been placed throughout Austria, while a majority of the loans are probably held by persons closely associated with the GP Group.
Contact
Silvia Graf
HYPO ALPE-ADRIA-BANK AG
PR International
phone: 0463/5860-880
Email: silvia.graf@hypo-alpe-adria.com |
