Management’s 'amicable resolution’
with the Irish government in a dispute over the
state’s buyback scheme has left the market with no
more clarity than before the outcome.
It was announced on July 1 that
Aurelius had withdrawn its challenge of a new financial law
that the Irish government is using to impose losses of up to
90% on subordinated bondholders in Bank of Ireland, EBS
Building Society and Irish Life and Permanent.
Aurelius had argued that the
High Court Subordinated Liability Order was part of what it
called an unlawful final solution. The company also claimed
that the government was trying to "super capitalise" the bank
"way out of all proportions".
The order sanctions...