Anglo bonds to be repaid in full

A New York hedge fund, Fir Tree Capital, is due to have €152 million worth of subordinated Anglo bonds repaid in full after refusing to take the 80% haircut imposed on bondholders.

Other subordinated debt holders in Anglo took 80% haircuts on their holding of subordinated Anglo Irish Bank and Irish Nationwide debt after investors were led to believe they would get virtually nothing if they did not accept 80% discounts on their bonds.

Fir Tree Capital called the Government’s bluff and are now being paid interest and due to be repaid in full.