SETTLEMENT TALKS have begun in the High Court challenge by a Cayman Islands investment firm to a Ministerial order clearing the way for some burden-sharing by junior bondholders in AIB.
Mr Justice John Cooke was yesterday asked to adjourn the matter to today when a settlement may be announced.
Aurelius Capital Master, along with some linked firms, has challenged a Subordinated Liabilities Order, secured by the Minister for Finance on April 14th, in proceedings against the Minister and the State.
The order allows the Minister to change terms, conditions and maturity dates on AIB’s subordinated bonds, lift restrictions on buybacks and reduce the value of the bonds so as to encourage bondholders to take up a debt buyback offer which had a take-up deadline of June 13th.
Under the buyback, AIB will impose losses of as much as 90 per cent on subordinated bondholders.
Submissions for Aurelius concluded just after lunchtime yesterday, the 10th day of the hearing, after which the State was due to put its case. However, talks between the sides began yesterday afternoon.
