Austria: Dispute about Hypo Credit to Alpine

IndustrialsConstruction ♦ Published: March 31, 2014; 14:47 ♦ (Vindobona)

The granting of a loan to Alpine Bau, which went bankrupt soon afterwards, in the amount of € 25m by Austrian problem bank Hypo Group Alpe Adria has become an issue of the Austrian prosecution.

An unsecured bridge loan was supposedly granted in September 2012. / Picture: © Vindobona.org

Former CEOs of Hypo Gottwald Kranebitte and Wolfgang Edelmüller, as well as the current supervisory board of the bank are facing court proceedings on suspicion of breach of trust.

According to Austrian daily “Kurier”, the bankers are under suspicion of having “knowingly missused their powers” and caused the nationalized bank a financial damage (property…