Banks Recapitalisation

Dáil Éireann Debate, Tuesday - 13 November 2012

Tuesday, 13 November 2012

Questions (242)

Gerry Adams

Question:

242. Deputy Gerry Adams asked the Minister for Finance further to Parliamentary Question No. 132 of 6 March 2012, if he will detail the total amount of interest paid on the subordinated bonds held by Fir Tree Capital Funds from Anglo Irish Bank, now Irish Bank Resolution Corporation, for their €200 million of subordinated notes in Anglo Irish Bank since the 29 of December 2010 to date; if he will detail if he continues to refuse to interfere with IBRC’s contractual obligation to pay interest and principal on these notes; if he will confirm if he has directed IBRC or invited Fir Tree Capital Funds directly to agree to take voluntary losses on the principal amount to be paid as was the case with all other Anglo Irish Bank subordinated bondholders; and if he will make a statement on the matter. [49808/12]

Written answers

Minister for Finance

I have been advised by IBRC of the following:

The US$165m Subordinated Notes Series A due on 29 September 2015 currently bear interest at three month LIBOR plus 0.92% per annum.

Interest payments made since 29 December 2010 to date are as follows:

$504,411.60 29-Dec-10

$504,409.95 29-Mar-11

$517,595.10 29-Jun-11

$491,557.92 29-Sep-11

$536,043.85 29-Dec-11

$623,852.39 29-Mar-12

$586,390.75 29-Jun-12

$575,825.25 29-Sep-12

The US$35m Subordinated Notes Series B due 29 September 2017 bear interest at 4.80% per annum to 28 September 2012 and thereafter reset at three month LIBOR plus 0.93% per annum.

Interest payments made since 29 December 2010 to date are as follows:

$840,000.00 29-Mar-11

$840,000.00 29-Sep-11

$840,000.00 29-Mar-12

$835,333.34 29-Sep-12

I have been advised that IBRC has a contractual obligation to pay interest and principal on the notes. I have not directed IBRC nor have I invited Fir Tree directly, to take voluntary losses on its subordinated notes other than when Fir Tree was invited to participate in IBRC’s liability management exercise in 2010 to take a voluntary loss.