High Court strikes out AIB bondholders case
The High Court has struck out a case by a junior bondholder opposing burden-sharing at AIB.
Minister for Finance Michael Noonan welcomed the move as a vindication of government policy.
The action was challenging the Finance Minister's move to allow AIB buy back bonds from junior bondholders at a massively reduced price in a bid to raise €2bn in capital for the bank.
Two sets of investors - Abadi and Co Securities Ltd and Aurelius - initiated legal proceedings opposing the haircut.
Abadi's legal action was to start today, but their lawyers asked the court to strike it out.
Mr Noonan said the move vindicated the Government's view that the the State is proceeding in a legally robust and fair manner to deal with a crisis that should not be borne entirely by the Irish State and the Irish taxpayer.
A legal challenge by junior bondholders Aurelius is still set to go ahead on Tuesday.
