Read more: Anglo Irish named world's dumbest bank by Fortune magazine
Anglo Irish Bank is being sued in federal court in New York. The action, one of multiple lawsuits now filed against the bank, is being taken by noteholders who want to enforce the banks agreements on two series of notes with an aggregate principal of $200 million.
Fir Tree Capital Opportunity Master Fund and Fir Tree Value Master Fund LP, both of which are based in the Cayman Islands, believe that a planned merger of Anglo Irish with Irish Nationwide Building Society would likely put the principal and interest payments due to them in jeopardy.
"Accordingly, the noteholders bring this action to enforce their contractual and equitable rights under the agreement," the hedge fund said in their complaint.
"The terms of the agreement and notes obligate Anglo Irish Bank to pay principal, premium if any and interest on the notes," it claimed.
The funds say that, unless a receiver is appointed, Anglo Irish Bank will continue to dispose of its assets in the US, preventing noteholders from recovering any judgments they might win against the bank.
Where does the term “the luck of the Irish” come from?