Two of Irish Nationwide Building Society's subordinated bondholders lost a bid to revive their UK lawsuit seeking to have the nationalised property lender liquidated.
The bondholders, Satinland Finance Sarl and Trimast Holding Sarl, had no hope of prevailing in the dispute and shouldn't be allowed to appeal last month's dismissal of the case, a panel of three judges ruled today in the Court of Appeal in London.
"I am satisfied that the judge was right in concluding the claim would fail," Judge Terence Etherton said at the hearing. "This application should be dismissed."
The investors sought to force a BNP Paribas SA unit, which was acting as debt trustee, to file a winding-up petition against Irish Nationwide. The suit came after Minister for Finance Brian Lenihan said in September that subordinated bondholders would be expected to share in the cost of bailing out Irish Nationwide and Anglo Irish Bank.
Mr Lenihan said the cost of rescuing the lenders could be as much as €39.7 billion.
The bondholders' lawyer, Nick Brocklesby of SJ Berwin LLP in London, didn't immediately return a call for comment.
Satinland and Trimast, which hold 25.6 per cent of Irish Nationwide's 13 per cent lower Tier 2 bonds due 2016, sued the lender and BNP Paribas Trust over claims that Ireland had indicated the lender wouldn't pay interest or principal as it becomes due on the notes. Irish Nationwide won dismissal of the case, leading to the appeal.
Bloomberg
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