- Apr 23, 2007
Hedge funds hold Ireland to ransom over Anglo Irish Bank bail-out - Telegraph
What do posters think of this? Will they press ahead?The investors are attempting to force the Irish authorities to pay them more for the debt they hold in Anglo Irish Bank and say if their demands are not met they could trigger a default crisis.
Anglo junior debt is trading in a range of 23 to 25 cents in the euro and the investors are thought to be looking for a payout of 35 to 40 cents.
The hedge funds in turn argue that the government has no legal right to force them to accept a haircut on the value of their holdings.
If the hedge funds were to press their case, Ireland could be required to put Anglo into insolvency, which could ultimately mean that depositors would have to make use of the country's guarantee scheme to get their money back.