The High Court is expected to decide today whether AIB is obliged to meet an interest payment on junior bonds that are the subject of a legal challenge.

AIB will ask the High Court tomorrow to rule whether or not it has to make certain coupon payments to junior bondholders this weekend.

Junior bondholders at AIB are still facing a multimillion euro haircut despite a legal challenge.

A “MARKET-BASED solution” to taking out junior bondholders in AIB should have been adopted by the Government rather than seeking a court order forcing them to sell at huge losses, a Cayman Islands investment firm representing bondholders has told the High Court.

The High Court has struck out a case by a junior bondholder opposing burden-sharing at AIB.

A challenge by junior bondholders to burden-sharing at AIB is to start before the High Court today.

AN investment firm representing some subordinated bondholders in AIB is expected to ask the High Court today to make orders which would delay plans for a debt buyback aimed at raising up to €2 billion to meet the bank’s additional €13.3bn capital bill.

THE High Court has agreed to fast-track a legal challenge by two New York-based investment firms to the Government’s plan to buy back debt from subordinated bondholders in AIB at a significant discount.

A HIGH Court challenge by holders of a portion of €2.6 billion worth of Allied Irish Bank (AIB) subordinated bonds, to prevent the Irish Government “burning” 80% of their holdings, is “entirely unfounded” according to Finance Minister Michael Noonan.

Junior bondholders at AIB are challenging an order ensuring they share some of the burden of bailing out the banks.