AIB junior bondholders set to challenge Govt High Court order

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

International investors, Aurelius and Abadi and Co Securities have brought legal proceedings against the Minister for Finance.

Finance Minister Michael Noonan secured a High Court order burning the junior bondholders at AIB, last week.

His plan is for the Government to buy back the bank's €2.5bn subordinated debt at a discount that could go as high as 80%.

However, under the relevant legislation, junior bondholders have five working days to mount a legal challenge to the order - a move made today by international investors Aurelius and Abadi and Co.

Details are not yet known about the two sets of proceedings which Mr Justice Kevin Feeney has listed for hearing on May 9th .