Dáil Éireann Debate, Wednesday - 21 September 2011
31 Deputy Finian McGrath asked the Minister for Finance if the bondholders in the Anglo Irish Bank deal on the Quinn Group took any write-down of outstanding debt; and if he will clarify if all debt or the portion of the debt that is repayable to the bondholders under the deal agreed. [25326/11]
Amharc ar fhreagraAs the Deputy is aware the Board of the bank is responsible for the day to day running of the bank and for the work out of the existing loan book. The bank has informed me that restructuring arrangements between the creditors and Anglo are due to be finalised in October of this year. These arrangements envisage that the €1.25B of debt will be split into at least two tranches with a senior tranche and subordinated tranche. It is also intended that the debt will be extended for a further 5 years and priced to reflect current market conditions. Based on the arrangements interest on the senior tranche will be paid through the life of the facility, while the subordinated tranche will accrue interest which is payable at the end of 5 years.
