Firm in bid to delay AIB’s debt buyback

AN investment firm representing some subordinated bondholders in AIB is expected to ask the High Court today to make orders which would delay plans for a debt buyback aimed at raising up to €2 billion to meet the bank’s additional €13.3bn capital bill.

Abadi & Co Securities Ltd indicated yesterday it would seek the order in proceedings before Mr Justice John Cooke in which Abadi and another investment firm are challenging a court order secured last April by the Minister for Finance as part of an effort to achieve some burden-sharing by bondholders in AIB.

The April Subordinated Liabilities Order (SLO), made under the Credit Institutions Stabilisation Act, allows the minister change terms, conditions and maturity dates on AIB’s subordinated bonds and lift restrictions on buybacks.