High Court hears arguments against burden-sharing at AIB

The High Court has been told emergency legislation has been unnecessarily used to coerce junior bondholders at AIB into disposing of their holdings for derisory sums of money.

Investor Aurelius is opposing a move by the Government to impose burden-sharing on subordinated bondholders at the bank.

Lawyers for Aurelius have argued there is nothing to show that circumstances in the bank have changed for the worse to justify the move.

They have submitted that under constitutional principles any action that infringes, removes or impairs the rights of bondholders must be necessary and proportionate.