Written answers

Tuesday, 12 February 2013

Department of Finance

Banking Guarantee Scheme

Photo of Pearse DohertyPearse Doherty (Donegal South West, Sinn Fein)
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To ask the Minister for Finance further to Parliamentary Question No. 248 of 5 February 2013, if he will confirm that he has provided a complete response; his views on the Abadi litigation with Allied Irish Bank; in view of the fact that he is a 15% shareholder in bank of Ireland, and formerly the shareholder of nearly 50%, if he will provide a list of the legal actions initiated by the holders of subordinated or senior bonds in the covered banks; the date the action was initiated; the identity of the applicant or applicants; and the identity of the respondent and the jurisdiction in which the action has been initiated. [7153/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The response to Parliamentary Question No. 248 of 5 February 2013 sets out the information received from each of the covered institutions in relation to the question posed. There were, also, two additional cases initiated against the Minister for Finance by holders of subordinated debt which were inadvertently omitted from that answer. Details of these cases are set out in tabular form below. The Minister for Finance made a statement in relation to the court action initiated against the Minister for Finance, Ireland and the Attorney General by Adabi and others on 3 June 2011. A copy of the statement is attached to this response. AIB was not a defendant to Abadi’s claim although it was a notice party to a claim made in the same proceedings by another bondholder for a limited purpose. Any confusion caused by the response to Parliamentary Question No.248 is regretted.

Cases

ProceedingsDate CommencedPlaintiffs/ApplicantsDefendant/

Respondent
JurisdictionCase Withdrawn/

Struck Out
Abadi & Co. Securities Limited v. The Minister for Finance, Ireland and The Attorney General

The High Court 2011/114 MCA and The High Court 2011/4118P
April 2011Abadi & Co. Securities LimitedThe Minister for Finance, Ireland and The Attorney GeneralIreland3 June 2011
Aurelius Capital Master Limited, ACP Master Limited, Aurelius Convergence Master Limited v. The Minister for Finance – Notice Party AIB

The High Court 2011/114 MCA
April 2011Aurelius Capital Master Limited, ACP Master Limited, Aurelius Convergence Master LimitedThe Minister for Finance

AIB was a Notice Party, not a Defendant
Ireland1 July 2011

The covered institutions have supplied the following information in response to your questions.

PTSB:

PTSB have informed me that no legal actions have been initiated by the holders of subordinated or senior bonds in respect of PTSB.

AIB:

AIB has informed me that one claim has been initiated by a New York based entity. It commenced litigation in the United States District Court for the Eastern District of New York against AIB arising out of the Liability Management Exercise in May 2011.

The claim was dismissed by the New York courts in August 2012 on the grounds that New York was not the appropriate jurisdiction in which to bring proceedings. All relevant disclosures in respect of this case are publicly available through New York District Court website www.nysd.uscourts.gov.

BOI:

BOI have informed me that in its published financial reports, shareholder circulars and prospectuses, which are all available on the Bank of Ireland website, Bank of Ireland provides appropriate disclosures concerning material litigation related issues.

IBRC:

IBRC have informed me of the following cases and details:

ProceedingsDate CommencedPlaintiff/ ApplicantsDefendant/ RespondentJurisdiction
Assenagon Asset Management v IBRC 2012/2264; HC11C0132015 April 2011Assenagon asset Management SAIBRCEngland & Wales
Enid Investment Corporation v IBRC 2012/2989; HC12B031563 Aug 2011Enid Investment CorporationIBRCEngland & Wales
Fir Tree Capital Opportunity Master Fund LP and Fir Tree Value Master Fund LP v Anglo Irish Bank Corporation Limited (formerly Anglo Irish Bank Corporation Plc) Civil Action No.11/CV/09559 March 2011Fir Tree Capital Opportunity Master Fund LP and Fir Tree Value Master Fund LPIBRCUnited States District Court – Southern District of New York

United States Court of Appeal for the Second Circuit.

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