Firm may appeal court ruling on AIB buyback

A CAYMAN Islands investment firm representing some junior bondholders in AIB said it may appeal a High Court ruling that limits the effect of its legal challenge to a ministerial order which cleared the way for a more severe debt buyback scheme.

Aurelius Capital Master Ltd, which along with some linked firms is challenging a Subordinated Liabilities Order obtained by the Minister for Finance from the court last April, had argued its challenge prevented the coming into effect of the entire SLO, made by the High Court on April 14.

The SLO allows the minister 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 with a take-up deadline of June 13. Under the buyback, AIB will impose losses of as much as 90% on subordinated bondholders.