Anglo junior bonds may net €270m

Junior bondholders of the doomed Anglo Irish Bank could be in line for a multi- million euro payout as the sale of assets of the Irish Bank Resolution Corporation (IBRC) continues to surpass expectations.

The liquidation of IBRC, formed from the embers of Anglo and Irish Nationwide, has yielded €16.5bn to date, resulting in a surplus of €1.85bn to distribute among its unsecured creditors. Among those creditors are unsecured junior bondholders who stand to benefit to the tune of €270m from the available funds.

Last December, Taoiseach Enda Kenny ruled out the prospect of junior bondholders being paid, saying he did not see any circumstances under which it could happen. The prospect of paying the bondholders is one the Government would rather avoid given the platform on which it was elected in 2011 and with another general election looming.