Ireland clarifies AIB bondholder positions

Author: | Published: 14 Jun 2011

The Irish government has confirmed that its subordinated liability order (SLO) regarding Allied Irish Bank (AIB) is still effective for 16 of its 18 subordinated bonds, following action by a US hedge fund.

The ruling confirmed that only two bonds are relevant to Aurelius Capital Management’s challenge to the Irish Ministry of Finance’s SLO. This gives clarification to other AIB bondholders ahead of the June 13 deadline for acceptance of the debt buyback scheme.

Following the announcement, AIB said...