Monday, June 13, 2011

British Pensioners v. Bank of Ireland

The Independent is reporting that British pensioners are taking legal proceedings against the Bank of Ireland's restructuring proposal:
One part of that restructuring relates to permanent interest bearing shares (PIBS) issued by Bank of Ireland subsidiary Bristol & West worth £75m.

Under the bank's restructuring plan investors in the PIBS will be offered just 20p out of every pound invested in the shares.

I would imagine that those shares were issued under English law. There might be some interesting conflicts of law issues if the English court hears the case. Still, it looks like an uphill battle for the pensioners!