One of the two New York-based investment firms challenging Government plans to share losses with Allied Irish Banks bondholders said it is “confident a mutually acceptable” resolution can be found.

Abadi and Co and Aurelius Capital Management filed cases on April 20th challenging plans to change the terms of AIB’s subordinated debt. The bank is 93 per cent State-owned.

“We would be willing to enter into a constructive dialogue with the finance minister,” said Carlos Abadi, president of Abadi and Co, adding that the Government proposals “would appear to interfere with fundamental property rights of creditors”.

Minister for Finance Michael Noonan said the cases were “entirely unfounded”. – (Bloomberg)