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Anglo Irish Creditors ‘Gambling’ on Better Debt-Swap

Anglo Irish Bank Corp. bondholders plan to block a proposed debt exchange that imposes losses of more than 1.3 billion euros ($1.8 billion) as they seek to force the nationalized lender to improve the offer.

Creditors holding a 690 million-euro “blocking position” of notes will vote against the deal worth 20 percent of their 1.6 billion euros of securities, according to a statement from Houlihan Lokey which is advising investors. The extra yield demanded to hold Irish 10-year bonds over German debt rose by about 20 basis points to 443 basis points today, approaching the record 449 basis points last month.