Today, the European Commission approved a €3 billion recapitalization and €10 billion risk shield for the Germany's HSH Nordbank (HSH), following last week's unanimous HSH shareholder approval of the €3 billion capital injection. The support measures are provided by two major shareholders of HSH, the city of Hamburg and the state of Schleswig-Holstein, which would inject €3 billion into HSH (€1.5 billion each) in the form of ordinary shares with voting rights to keep the bank afloat. They would also provide a €10 billion guarantee, shielding a broad asset portfolio of about €172 billion. A first-loss-tranche of €3.2 billion would be covered by HSH. The second loss tranche of up to €10 billion would be covered by Hamburg and Schleswig-Holstein (50% each).
Register Now As you are not an existing subscriber please register for your free daily legal newsfeed service.Register
If you have any questions about the service please contact firstname.lastname@example.org or call Lexology Customer Services on +44 20 7234 0606.
European Commission approves HSH Nordbank recapitalization and risk shield provided by two major shareholders
If you are interested in submitting an article to Lexology, please contact Andrew Teague at email@example.com.
Senior Patent Counsel
Royal DSM NV