Bank of Ireland has triggered restructuring credit event, says Isda

Isda’s credit derivatives determinations committee has ruled that Bank of Ireland has triggered a restructuring credit event on its credit default swaps. Isda has not yet set a date for any auctions to be held to decide the value of the deliverable obligations.

Bank of Ireland announced on 31 May it would ask subordinated debt holders to take a haircut of 80-90% on around €2.6 billion of debt. BOI threatened to amend the terms of the debt if the offer was not accepted, potentially meaning BOI would acquire the debt for significantly less than the 10% or 20% offered.