Allied Irish Banks Defaults
June 16th, 2011Via: BBC:
Allied Irish Banks (AIB) has been deemed to be effectively in default on its debts by the association of banks that trade in credit derivatives.
The ruling means the writers of $500m (£306m) of the insurance-like contracts will now have to make cash payouts.
On Thursday, the Irish lender stopped interest payments on some of its bonds and postponed their repayment dates.
The move is expected to cause the affected bond investors 90% losses and to save AIB a total of 2bn euros.
