German bank's rescue deal collapses
05.10.2008 09:45
Germany's second largest commercial property lender has said a £27 billion rescue plan for the company has fallen apart after private lenders withdrew their support. Hypo Real Estate Holding said it would seek to stay in business through "alternative measures", but did not say what those might be.
The company said it was "in the process of determining the consequences" of the rescue plan's failure, according to a statement. Hypo is the first German blue chip firm to seek a government rescue after running into trouble in mid-September as credit froze on international markets. The plan -- approved on Thursday by the EU -- would have entailed the German government injecting £20.5 billion and a "liquidity line to be provided by a consortium of several financial institutions", the company said. "The consortium has now declined to provide the line," it said, without identifying the banks in the consortium. The government had said last week that none was foreign.
The German government had no immediate comment on the plan's collapse. A spokeswoman for German financial regulator BaFin also declined to comment.
05.10.2008 09:45
Germany's second largest commercial property lender has said a £27 billion rescue plan for the company has fallen apart after private lenders withdrew their support. Hypo Real Estate Holding said it would seek to stay in business through "alternative measures", but did not say what those might be.
The company said it was "in the process of determining the consequences" of the rescue plan's failure, according to a statement. Hypo is the first German blue chip firm to seek a government rescue after running into trouble in mid-September as credit froze on international markets. The plan -- approved on Thursday by the EU -- would have entailed the German government injecting £20.5 billion and a "liquidity line to be provided by a consortium of several financial institutions", the company said. "The consortium has now declined to provide the line," it said, without identifying the banks in the consortium. The government had said last week that none was foreign.
The German government had no immediate comment on the plan's collapse. A spokeswoman for German financial regulator BaFin also declined to comment.
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