Anglo Irish Debt Buyback Is Said to Be Considered by Ireland

[BoyRacer]

Anglo Irish Debt Buyback Is Said to Be Considered by Ireland’s Government → bloomberg.com/news/2010-09-2 … nment.html

Ireland’s government is considering options for Anglo Irish Bank Corp., including allowing the company to buy back subordinated debt, a person familiar with the situation said.

Anglo Irish, the Dublin-based lender taken over by the government last year, said as recently as Sept. 8 that the bank had sought approval from authorities to repurchase subordinated debt. Anglo Irish generated more than 1.5 bilion euros of profit from previous buybacks, said the person who declined to be identified because no final decision has been made.

The government is in talks with the European Commission on Anglo Irish, the person said.

[Enoch_Root]

So basically, Anglo are going to partially default on their subordinated debt holders and buy back debt at 1,2,20 ? cent in the euro.

Wasn’t this what McWilliams and many on the pin advocated two years ago?

Oh I forgot, the government had to waste billions on recapitalising Anglo and setting up NAMA first.

What a bunch of idiots

[verbatim]

Anglo Irish May Buyback Junior Debt at 95% Discount, Glas Says

By Dara Doyle
Oct. 21 (Bloomberg) – Anglo Irish Bank Corp. may buy back
subordinated debt at a discount of much as 95 percent, according
to Glas Securities, the Dublin-based fixed-income specialists.
“At this point, a 5 to 10 price range on Tier 1 and a 20
to 30 price range on Lower Tier 2 is possible, although a deeper
discount cannot be ruled out,” Rory Murray, an analyst at Glas
said.

[ncallanan]

@Enoch Root

So basically, Anglo are going to partially default on their subordinated debt holders and buy back debt at 1,2,20 ? cent in the euro.

Wasn’t this what McWilliams and many on the pin advocated two years ago?

Oh I forgot, the government had to waste billions on recapitalising Anglo and setting up NAMA first.

What a bunch of idiots

Eh, it was guaranteed. Once the guarantee expired they could buy it back at a larger discount. Everybody thought they should and would this. Why are you crediting McWilliams?

[Enoch_Root]

Eh, it was guaranteed. Once the guarantee expired they could buy it back at a larger discount. Everybody thought they should and would this. Why are you crediting McWilliams?

Because he advocated it before the gaurantee. Everybody didn’t think that they should and would do this. In reality, this was and is the only option open to them. Default.

[Schrodinger]

Effectively burnt?

businessandleadership.com/econom … p-akin-to/

Canadian credit agency DBRS has said that Anglo’s offer to swap subordinated bonds for new notes is “tantamount to default” and will lead to a further downgrade of the nationalised bank’s ratings.

The agency said the offer gave junior bond holders very few options, with most people being compelled to exchange or else face “significant burden-sharing”.

Last week, Anglo offered investors a choice of trading €1.6bn of notes at 20 cents on the euro or redeeming them for 1 cent per €1000 face amount.

DBRS will downgrade the bank’s non senior ratings to D for “default” after the exchanges are made.

Another ratings agency Fitch has kept the bank on negative watch.