AIB granted court orders against former executives of subsidiary

The State owned Allied Irish Bank has been granted temporary orders by the High Court against six former senior executives of one of its successful subsidiaries, Allied Irish Bank International Financial Services Ltd. (AIBIFS)

The State owned Allied Irish Bank has been granted temporary orders by the High Court against six former senior executives of one of its successful subsidiaries, Allied Irish Bank International Financial Services Ltd. (AIBIFS)

Senior Counsel Michael Mc Dowell, representing AIB, told Mr Justice Barry White today that the bank had been offered €55m for the subsidiary but the offer had been reduced to €33m incurring a loss of €22m.

Mr Mc Dowell said the bank claimed there had been a clear conspiracy and covert plan by the former executives to set up a rival business in Luxemburg to poach clients and staff of IFS.

The project, known as Plan B, was described as a premeditated strategy to head hunt staff while still employees of the bank and poach clients of IFS.

Mr Mc Dowell said the bank had agreed to sell IFS to a preferred bidder for €55m but this had been reduced to €33m after the staff had exited IFS causing AIB a loss of €22m.

Judge White granted orders to preserve all documentation regarding the head hunting of staff and loss of clients. The orders will also apply to internet service providers. The case, which has been entered into the Commercial Court list, will come back before the court on September 20.

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