On June 21, 2011 the EMEA Credit Derivatives Determinations Committee resolved that a Failure To Pay Credit Event occurred in respect of Allied Irish Banks, p.l.c. and that a senior auction and a subordinated auction would be held. This page contains details of the DC Resolutions, auction documentation and other items relating to the auction for Allied Irish Banks, p.l.c..
Further documentation relating to the auction will be added as it becomes available.
Event Publicly Available Information:
| Auction Timeline: | CDS Credit Event Timeline |
| List of Participating Bidders: | List of Participating Bidders |
| Deliverable Obligations: | Final List of Deliverable Obligations |
| Allied Irish Banks, p.l.c. Auction Settlement Terms | Allied Irish Banks, p.l.c. Subordinated Auction Settlement TermsAllied Irish Banks, p.l.c. Senior Auction Settlement Terms For the purposes of the 2011 Allied Irish Banks p.l.c. Subordinated Credit Derivatives Auction Settlement Terms (the "Subordinated AST"), the Physical Settlement Period for Subordinated Obligations (as defined in the Subordinated AST) has been shortened as set out below and differs depending on whether the Subordinated Obligations constitute Non-Delayed Settlement Subordinated Obligations (i.e. those with ISINs (i) XS0232498393; (ii) XS0435957682; and (iii) XS0214107053) or Delayed Settlement Subordinated Obligations (those with ISINs (i) XS0208845924; (ii) XS0368068937; and (iii) XS0498532117). The Non-Delayed Settlement Subordinated Obligations did not have a call option inserted into their terms and conditions on 16 June 2011 allowing Allied Irish Banks p.l.c. to redeem those bonds at less than par. There is, therefore, concern that the Non-Delayed Settlement Subordinated Obligations may become subject to a new subordinated liabilities order (potentially reducing the principal amount of these bonds) which could take effect prior to the physical settlement of any RAST. To avoid this happening, the Physical Settlement Period for the Non-Delayed Settlement Subordinated Obligations is:(a) one Business Day following the Auction Date in relation to a Customer Buy RAST (NB: if settlement is to occur on a T+1 basis, settlement instructions will need to be sent through the clearing systems on the Auction Date); (b) two Business Days following the Auction Date in relation to an Auction RAST; and (c) three Business Days following the Auction Date in relation to a Customer Sell RAST. The Delayed Settlement Subordinated Obligations are subject to Allied Irish Banks p.l.c. liability management exercise. The expiration date of the tender offer for the Delayed Settlement Subordinated Obligations is 21 July 2011. Therefore, the Physical Settlement Period for the Delayed Settlement Subordinated Obligations has been shortened so that the recipients of such bonds may participate in the tender offer. The Physical Settlement Period for the Delayed Settlement Subordinated Obligations is: (a) two Business Days following the Auction Date in relation to a Customer Buy RAST; (b) four Business Days following the Auction Date in relation to an Auction RAST; and (c) six Business Days following the Auction Date in relation to a Customer Sell RAST. In light of the short Physical Settlement Periods for Subordinated Obligations, (i) the period during which a NOPS Amendment Notice specifying one or more Subordinated Obligations as Deliverable Obligations can be effectively delivered has been shortened to one Business Day following the Auction Date in relation to a Customer Buy RAST, two Business Days following the Auction Date in relation to an Auction RAST and three Business Days following the Auction Date in relation to a Customer Sell RAST; and (ii)if Buyer fails to deliver Subordinated Obligations during the applicable Physical Settlement Period and Seller fails to buy-in the Subordinated Obligations on the Business Day after the relevant Physical Settlement Date, Buyer will be required to deliver a NOPS Amendment Notice specifying Deliverable Obligations which are not Subordinated Obligations. |
| Related Press Release:ISDA Determinations Committee: Allied Irish Banks, p.l.c. Failure to Pay Credit Event | |