Allied Irish Banks, p.l.c.Discretionary Coupon Payments
(Thomson Reuters ONE) - Embargo 07:00 1st December 2009 Allied Irish Banks, p.l.c. Discretionary Coupon PaymentsFollowing the recent previously announced submission of itsrestructuring plan, Allied Irish Banks, p.l.c. ("AIB") [NYSE:AIB] isin the preliminary stage of its engagement with the EuropeanCommission ("EC"). The EC will consider over the coming months thecompetitive effects of state aid on AIB's business and markets.The EC has indicated that, in line with its policy and pending itsassessment of the AIB restructuring plan, AIB should not make couponpayments on its Tier 1 and Tier 2 capital instruments unless under abinding legal obligation to do so.AIB has agreed to this request by the EC and announces that under theterms of the Stg £350,000,000 Fixed Rate/Floating Rate GuaranteedNon-voting Non-cumulative Perpetual Preferred Securities of AIB UK 3LP which has the benefit of a subordinated guarantee of AIB ("the LP3Preferred Securities") that the non-cumulative distribution on thesesecurities, which would otherwise have been payable on 14 December2009 will not now be paid. The decision is entirely without prejudiceto all of AIB's entitlements under the state aid rules and the EUTreaties.The effect of this decision by AIB will be to trigger the "DividendStopper" provisions of the LP 3 Preferred Securities, so that AIBwill be precluded, for a period of one calendar year from andincluding 14 December 2009, from declaring and paying anydistribution or dividend on its "Junior Share Capital", an expressionwhich, at the moment, comprises AIB's ordinary shares ("the OrdinaryShares") and the Irish Government ?3.5bn preference shares ("thePreference Shares") issued on 13th May 2009 to the National PensionsReserve Fund Commission of Ireland ("NPRFC"). AIB is similarlyprecluded, for the same period of time, from declaring and paying anydistribution or dividend (or, where applicable, is bound to procurethat no distribution or dividend is declared or paid) on any "ParitySecurity", an expression which at the moment, comprises AIB's 7.5%Step-up Callable Perpetual Reserve Capital Instruments ("the RCIs")on which an annual Coupon Payment would otherwise be due on 28February 2010, the Fixed Rate/Floating Rate Guaranteed Non-VotingNon-Cumulative Perpetual Preferred Securities issued by AIB UK I LP("the LP 1 Preferred Securities") on which an annual non-cumulativedistribution would otherwise be due on 17 December 2009 and the FixedRate/Floating Rate Guaranteed Non-Voting Non-Cumulative PerpetualPreferred Securities issued by AIB UK 2 LP ("the LP 2 PreferredSecurities") on which an annual non-cumulative distribution wouldotherwise be due on 16 June 2010.Were the Dividend Stopper to remain in force, AIB would be precludedfrom paying the dividend due on the Preference Shares on 13 May 2010.Under these circumstances, in accordance with the terms of thePreference Shares, the NPRFC would become entitled to be issued, at adate in the future, a number of Ordinary Shares related to the cashamount of the dividend that would otherwise have been payable.However, consistent with the stated objective of the Minister forFinance of not taking majority stakes in the banks (including in AIB)the preference of each of the Minister for Finance, and AIB is forAIB to pay the dividends normally on the Preference Shares. Infurtherance of this objective, the Department of Finance and AIB arein continuing discussions with the EC in respect of AIB'srestructuring plan (which is required in compliance with state aidrules), one element of which would allow AIB to resume declarationand payment of dividends and distributions as normal, including theretrospective payment of 14th December dividend on the LP3 Securitiesto permit payment of the Preference Share dividends in cash.If a restructuring plan is agreed with the EC on this basis, subjectto the terms of the instruments, AIB would intend to payretrospectively the distribution on the LP 3 Preferred Securitieswhich would have become payable on 14 December on the basis that theDividend Stopper would be released thereby enabling all otherdividend and distribution payments on Parity Securities, and thedividend on the Preference Shares, to be paid in cash on 13th May2010.The EC has confirmed to AIB and the Department of Finance that,without prejudice to the outcome of its review of the restructuringplan, it is open, in arriving at its final decision to giving fullconsideration to the approach outlined above. -ENDS-For further information please contact:Alan Kelly Catherine BurkeGeneral Manager, Group Finance Head of Corporate RelationsAIB Group AIB GroupDublin 4 Dublin 4Tel: +353-1-641 2162 Tel: +353-1-641 3894 Forward-looking statementsThis document contains certain "forward-looking statements" withinthe meaning of Section 27A of the US Securities Act of 1933, asamended, and Section 21E of the US Exchange Act of 1934, as amended,regarding the belief or current expectations of the Group, AIB'sDirectors and other members of its senior management about theGroup's financial condition, results of operations and business ofthe Group and certain of the plans and objectives of the Group,including statements relating to possible future write-downs orimpairments. In particular, certain statements with regard tomanagement objectives, trends in results of operations, margins, riskmanagement, competition and the impact of changes in FinancialReporting Standards are forward-looking in nature. Theseforward-looking statements can be identified by the fact that they donot relate only to historical or current facts. Forward lookingstatements sometimes use words such as 'may', 'could', 'would, 'will,'aim', 'anticipate', 'target', 'expect', 'estimate', 'intend','plan', 'goal', 'believe', or other words of similar meaning.Examples of forward-looking statements include, among others,statements regarding the Group's future financial position, incomegrowth, business strategy, projected costs, capital position,estimates of capital expenditures, and plans and objectives forfuture operations. Because such statements are inherently subject torisks and uncertainties, actual results may differ materially fromthose expressed or implied by such forward-looking information.These forward-looking statements are not guarantees of futureperformance. Rather, they are based on current views and assumptionsand involve known and unknown risks, uncertainties and other factors,many of which are outside the control of AIB and are difficult topredict, that may cause actual results to differ materially from anyfuture results of developments expressed or implied from theforward-looking statements. Factors that could cause actual resultsto differ materially from those expressed or implied include, but arenot limited to, changes in economic conditions globally and in theregions in which the Group conducts its business, changes in fiscalor other policies adopted by various governments and regulatoryauthorities, the effects of competition in the geographic andbusiness areas in which the Group conducts its operations, theability to increase market share and control expenses, the effects ofchanges in taxation or accounting standards and practices,acquisitions, future exchange and interest rates, the risk that theGroup may not participate in NAMA or that the NAMA Scheme may turnout to be unsuccessful in achieving its goals, the lack of controlover the nature, number and valuation of the assets to be transferredto NAMA and the success of the Group in managing these events.The Group cautions that the foregoing list of important factors isnot exhaustive. Investors and others should carefully consider theforegoing factors and other uncertainties and events when making aninvestment decision based on any forward-looking statement. In lightof these risks, uncertainties and assumptions, the forward-lookingevents discussed in this Report may not occur.The forward-looking statements speak only as of the date of thisdocument. Except as required by the Irish Financial Regulator, theIrish Stock Exchange, the UK Financial Services Authority, the LondonStock Exchange or applicable law, AIB does not have any obligation toupdate or revise publicly any forward-looking statement, whether as aresult of new information, further events or otherwise. AIB expresslydisclaims any obligation or undertaking to publicly release anyupdates or revisions to any forward-looking statement contained inthis document or incorporated by reference to reflect any change inAIB's expectations with regard thereto or any change in events,conditions or circumstances on which any such statement is based.This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 01.12.2009 - 08:01 Uhr
Sprache: Deutsch
News-ID 9059
Anzahl Zeichen: 0
contact information:
Town:
London
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 453 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Allied Irish Banks, p.l.c.Discretionary Coupon Payments"
steht unter der journalistisch-redaktionellen Verantwortung von
Allied Irish Banks, p.l.c. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
