Michael McGrath (Cork South Central, Fianna Fail)
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Question 112: To ask the Minister for Finance the amount of legal fees incurred by a company (details supplied), and which he has now agreed will be paid by the State in respect of the legal case the company took against him in the Commercial Court regarding losses being imposed on subordinated bondholders in AIB; and if he has agreed to pay the legal fees of any other party in similar legal proceedings. [15100/11]

Michael Noonan (Limerick City, Fine Gael)
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On 14 April 2010 the High Court granted a Subordinated Liabilities Order under the Credit Institutions (Stabilisation) Act 2010 in respect of Allied Irish Banks. Two challenges from subordinated bond holders were received in relation to the Order.

The company referred to by the Deputy was one of the two firms involved. This company withdrew its challenge on 3 June 2011 after agreement was reached with the company on a payment in respect of their legal costs. The payment of costs is subject to a legal confidentiality agreement so I cannot comment on the level of fees incurred. However, I can confirm that no other payments have been made in respect of any party in these proceedings. The company publicly undertook to participate in the liability management exercise Allied Irish Banks announced on 11 May.

The withdrawal of the legal action by this company affirms my view and that of the Government that the challenges were not well founded. The State is proceeding in a legally robust and fair manner to deal with a crisis which should not be borne entirely by the Irish State and the Irish taxpayer.