Judge rules AIB bondholders not entitled to report

A HIGH Court judge has ruled that firms representing some junior bondholders in Allied Irish Banks are not entitled to be given a report which led to the Central Bank recalculating AIB’s recapitalisation requirements at €13.3 billion, up from €4.2 billion.

The report by international asset management company Blackrock Solutions was sought for the legal challenge by two firms opposing the Minister for Finance’s decision last month to seek a subordinated liabilities order (SLO) to impose burden-sharing on AIB bondholders.

Mr Justice John Cooke ruled yesterday on discovery applications by the firms, and by the Minister, in advance of the June 2nd hearing. The firms are British Virgin Islands-registered Abadi Co Securities and Cayman Islands-registered Aurelius Capital Master and linked firms.