State and investment firm settle over burden sharing
Published 01/07/2011 | 11:37
A US investment firm and the State have settled over an Allied Irish Banks plan to burn junior bondholders.
Details of the settlement were not released.
Finance Minister Michael Noonan has welcomed the settlement between the State and Aurelius Capital Management.
In its High Court action, investment firm Aurelius claimed the Government was using legislation to force bondholders into disposing of their holdings for small sums of money.
'It has been agreed that, for commercial reasons, the terms of the settlement will remain confidential,' the Department of Finance said.