Abadi and Co, the New York-based investment firm challenging Government plans to change terms of Allied Irish Banks Plc’s subordinated debt, is “dismayed at the emerging details” of the bank’s bond buyback offer.
AIB said yesterday it plans to buy back junior debt at discounts of as much as 90 per cent. This is not the “market-based” type of transaction that Minister for Finance Michael Noonan had said it would be, said Carlos Abadi, president of Abadi and Co.
AIB, which is 93 per cent government-owned, has been ordered by regulators to raise a further €13.3 billion of capital. Mr Abadi plans to continue its legal challenge, launched last month. "I do remain open to good faith negotiations," said Mr Abadi. – (Bloomberg)
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