Whale Rock comments on ISDA ruling on AIB

Whale Rock, the City-based chartered accountancy, legal and company secretariat specialist, has commented on the ruling by the International Swaps and Derivatives Association (ISDA) that the decision by AIB (Allied Irish Banks, p.l.c) not to pay a coupon on a subordinated bond has triggered a failure to pay credit event.

Nigel Kushner, CEO of Whale Rock Legal, said that ISDA's change of heart would have significant repercussions in the market.

He said: "ISDA has ruled that AIB's decision not to pay a coupon on a subordinated bond has triggered a 'failure to pay' credit event.

“The practical impact is that subordinated bondholders will likely receive more money back than they might have expected from the restructuring credit event."

For further comment, please contact Whale Rock on 0207 726 5080 or visit www.whalerock.co.uk

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