VIENNA Oct 10 Creditors holding virtually all
the outstanding bonds of failed lender Hypo Alpe Adria
have accepted a debt buyback offer, a major step
towards drawing a line under Austria's worst postwar financial
scandal, the province of Carinthia said on Monday.
Two years after "bad bank" Heta Asset Resolution
was created to wind down Hypo's assets, Austria hopes the
hard-won deal will restore its credibility with foreign
Holders of 99.55 percent of senior bonds and 89.42 percent of
junior bonds accepted the offer, said Carinthia, which
guaranteed the bonds and made the offer.
(Reporting by Kirsti Knolle; editing by Francois Murphy)