High Court gives AIB stay of execution on paying £21m coupon

AIB has secured an interim High Court order which may let it avoid making a £21 million (€23.7m) payment to junior bondholders.

The coupon payment was due to be made today but, following a decision by Mr Justice John Cooke yesterday, the funds will instead be lodged in court pending the outcome of a challenge by a Cayman Islands investment firm to an order secured by the Minister for Finance in April.

That Subordinated Liabilities Order (SLO), if upheld by the court, will exempt AIB from paying the coupon at all.