High Court backs burden-sharing move

FINANCE Minister Michael Noonan has welcomed the backing of the High Court to take whatever action is needed to force AIB’s subordinated bondholders to share the burden of debt with the bank.

This is part of his stated aim to recoup between €5 billion and €6bn on Irish bank debt, forcing bondholders to take an 80% hit.

A High Court hearing yesterday approved Mr Noonan’s order aimed at ensuring burden sharing by bondholders in the re-capitalisation of AIB. Mr Justice Brian McGovern said it would be possible to issue a subordinated liability order under the Credit Institutions (Stabilisation) Act 2010.