Bid to wind up Irish Nationwide fails
Published 21/12/2010 | 05:00
A UK court last night threw out an appeal by lenders to Irish Nationwide Building Society (INBS) against an earlier ruling that stopped them having the Irish lender wound up.
Hedge-fund controlled Trimast Holding and Satinland Finance took the appeal after the English High Court ruled in November that they could not have INBS wound up for threatening to impose losses on its subordinated lenders.
A three-judge panel at the English Court of Appeal ruled that the lenders had no hope of prevailing in the dispute.
"I am satisfied that the judge was right in concluding the claim would fail," Judge Terence Etherton said.
The judges said that, as a result, Trimast and Satinland would not be allowed to appeal last month's dismissal of the case. They said the case should now be dismissed.
The two investors took the case against INBS and BNP Paribas. They wanted to force BNP Paribas, the trustee of all bonds issued by the borrower, to file a winding-up petition against INBS.
Trimast and Satinland hold around 25pc of the €250m of subordinated bonds issued by the building society.