Allied Irish Bank haircut protested

BONDHOLDERS of Allied Irish Banks yesterday launched a challenge against Irish government plans to cut 80 per cent of the bonds’ value.

Ireland’s government won a High Court order last week to change the terms of €2.6bn (£2.3bn) worth of AIB’s subordinated bonds. Investors including Carlos Abadi, director of Abadi & Co Securities, plan to appeal the decision. Aurelius Capital Management also lodged an application to block the court order.