AIB bondholder withdraws challenge to state’s burdening-sharing scheme

A JUNIOR bondholder in AIB withdrew its challenge to a state-backed burden-sharing scheme yesterday as the Government forged ahead with plans to recapitalise the state-owned lender.

The Government is bidding to impose losses of up to €5 billion on junior bondholders across the sector to help fund a €24bn bill to recapitalise struggling lenders.

New York-based firm Aurelius Capital withdrew its High Court challenge against a Government order to impose losses of up to 90% on subordinated bondholders in AIB, which the Government said will bring in more than €1.6bn.