One of two international investment firms involved in a challenge to the Government's plans to buy back debt from AIB junior bondholders has withdrawn its action.
Lawyers for Abadi and Company Securities told Mr Justice John Cooke that the action could be struck out.
Senior Counsel John Rogers, for the firm, said the Minister for Finance had agreed to pay Abadi and company a sum of money in respect of its legal costs. The action involving the other investment firm, Aurelius Capital, is still going ahead and is expected to begin on Tuesday.
Finance Minister Michael Noonan welcomed the move, saying it vindicated the Government's view that the challenges are unfounded. 'No financial incentive was made or offered to the applicant as part of the agreement to withdraw other than a payment in respect of their legal costs,' he added.
Minister Noonan said the State would continue to fight the remaining challenge.
