Anglo bondholder bites back

[BoyRacer]

Anglo bondholder bites back - Sean Whelan-> rte.ie/news/2011/0216/anglo.html

The first sign that bondholders might not sit quietly in the barber’s chair and have their flowing manes trimmed has arrived in the United States District Court for the southern district of New York, where a hedge fund from the Cayman Islands is suing Anglo Irish Bank.

The fund in question is Fir Tree Capital, which bought $200m of Anglo subordinated debt in September 2005. Fir Tree now believes it is being lined up for an involuntary haircut - in other words it is not going to get all its money back - as it will be forced to bear some of the costs of the failure of Anglo Irish Bank.

there is more

[BoyRacer]

Anglo Irish rounds on New York hedge fund over action - Emmet Oliver -> independent.ie/business/iris … 66894.html

Anglo Irish has made its first response to a legal action by junior bondholders in New York, dismissing their case as “utterly meritless”.
The nationalised bank has filed a highly aggressive response to a case being brought by hedge fund Fir Tree Capital, which is seeking to have all its debts honoured and an injunction placed on Anglo moving any assets out of US jurisdiction.
The Anglo filing, seen by the Irish Independent, accuses Fir Tree of trying to “twist” the recent crisis in the Irish banking system into personal gain for the company.

there is more

[BoyRacer]

Two hedge funds appeal US court’s Anglo ruling - John Mulligan -> independent.ie/business/iris … 80288.html

Two Cayman Island hedge funds have appealed a US court ruling that granted immunity to Anglo Irish Bank in a row related to a $200m (€155m) subordinated bond.
The bank, now known as Irish Bank Resolution Corporation (IBRC), was granted immunity in the case by a New York District Court judge in November because the institution is a sovereign entity.
Hedge funds Fir Tree Capital Opportunity Master Fund and Fir Tree Value Master Fund had sought to prevent Anglo from moving assets out of the US and also wanted their debts honoured.
The hedge funds acquired the $200m of bonds, which had been originally issued in 2005, in November 2010.

there is more

[random_punter]

Two hedge funds appeal US court’s Anglo ruling - John Mulligan -> independent.ie/business/iris … 80288.html

Two Cayman Island hedge funds have appealed a US court ruling that granted immunity to Anglo Irish Bank in a row related to a $200m (€155m) subordinated bond.
The bank, now known as Irish Bank Resolution Corporation (IBRC), was granted immunity in the case by a New York District Court judge in November because the institution is a sovereign entity.

there is more

Surely that would have been the best way to dodge Anglo’s debts. Screw all the bondholder then claim sovereign immunity?

[jcsmith]

No sovereign immunity under Irish law. English law neither for that matter (assuming majority of Anglo bonds issued in London).

[slasher]

ft.com/cms/s/0/3ec0e77a-6d53 … z1pruk4M3X

Irish case could raise US capital costs
By Dan McCrum in New York
The outcome of a Federal Appeals Court decision in a battle between Anglo Irish Bank and Fir Tree Capital, a New York hedge fund, threatens to raise the cost for foreign borrowers of raising capital in the US, particularly banks in European countries still judged to be fragile.
Fir Tree sued last year to force the Irish bank to comply with covenants attached to $200m of debt issued in New York and subject to state law. However, the New York District Court dismissed the suit, ruling that, as the bank is now controlled by the Irish government, it is a sovereign matter for the Irish courts…

[Pyramid5]

This nearly slipped under the radar

What might transform anxiety to terror is the little item buried in Note 38 to the accounts at the veeeery end of the report. IBRC lost a court case in London’s High Court in July 2012 which means that it must repay a junior bondholder the sums haircut in a bond redemption. The case has been appealed by IBRC, but if IBRC loses the appeal, then it is likely to be exposed to claims that may be in the billions from other disgruntled junior bondholders whose bonds were subjected to haircuts. And so too, by the way, might AIB and Bank of Ireland.

IBRC is also currently recognising nearly €900m for NAMA subordinated bonds which will only be honoured if NAMA makes a profit by 2020, and NAMA is at this stage forecasting a breakeven WITHOUT HONOURING THESE BONDS – in other words, NAMA doesn’t think it will make a profit which will allow these bonds to be redeemed and that is at odds with what IBRC thinks.
namawinelake.wordpress.com/2012/08/24/namas-main-irish-competitor-posts-half-year-results/

Thanks to Namawinelake

[TheJackal]

Interesting idea aobut merging NAMA and IBRC, who are both aiming to wind up by 2020. A lot of savings could be made

[BoyRacer]

$200m Anglo bond notes destroyed by Superstorm Sandy flooding, court told - John Mulligan -> independent.ie/business/iris … 68142.html

Bonds with a $200m (€149m) face value issued by Anglo Irish Bank were destroyed in New York after the vault where they were stored was flooded during Superstorm Sandy last October, a US court has been told.
The revelation comes as two Cayman Island hedge funds are poised this week to appeal the ruling in a 2011 case they took against the Irish state-owned bank, now known as Irish Bank Resolution Corporation (IBRC).

there is more

[yoganmahew]

$200m Anglo bond notes destroyed by Superstorm Sandy flooding, court told - John Mulligan -> independent.ie/business/iris … 68142.html

Bonds with a $200m (€149m) face value issued by Anglo Irish Bank were destroyed in New York after the vault where they were stored was flooded during Superstorm Sandy last October, a US court has been told.
The revelation comes as two Cayman Island hedge funds are poised this week to appeal the ruling in a 2011 case they took against the Irish state-owned bank, now known as Irish Bank Resolution Corporation (IBRC).

there is more

The dog ate my homework?

So IBRC just need to refuse to reissue the notes? Presumably they can argue that Anglo no longer exists…

[ps200306]

Hey, this is Oirland. They probably just have to produce a cup of salty water from their vaults, and we’ll pay them off.

Tell them it’s courtesy of “Brine” Lendahand.

[Mantissa]

Aren’t the bonds themselves the actual contract? Would this not be like me going into the central bank and demanding that they issue me a €100 note to replace the one I lost in the pub?

Apparently bearer bonds are rare:

Investopedia explains ‘Bearer Bond’
Bearer bonds are getting harder and harder to find these days, especially within developed economies. While they are fairly common in many parts of the world (mainly places where anonymity is an issue), the fact that little protection or recourse exists for holders against issues such as theft has taken away their applicability in recent decades. Furthermore, most bond instruments aren’t even physically issued anymore, but exist only in the computerized records of brokers and custodians.

Read more: investopedia.com/terms/b/bea … z2JJRF8Ffi

investopedia.com/terms/b/bea … z2JJRCDjc5

[Tis_Meself]

Is this ‘Drowning the Bondholders’ … seeing that burning didn’t work!!!

[2Pack]

Tell these parasites to sue their insurers over the bonds being stored below sea level.