AIB sells shares in Bulgarian banks for 216M loss

red menace

http://www.rte.ie/news/2011/0622/aib-business.html

AIB sold its 49.99% in Bulgarian-American Credit Bank (BACB), for which it paid €216m in 2008, for €100,000.




AIB says it has already booked the losses from its 49.99% stake in a Bulgarian bank which it sold in May for €100,000 although it originally paid €216m in 2008.
A spokeswoman said the value of its stake was written down to zero over several years, and finally written off completely in 2010.
She confirmed that the purchase price of €100,000 reported in Bulgaria was accurate but she added that it would not affect this year's accounts.
AIB said in May that it had agreed to sell the stake, but did not disclose the price paid.
A statement on BACB's website said the stake had been bought by Clever Synergies Investment Fund (CSIF), which is owned by businesswoman Tsvetelina Borislavova.
BACB is a publicly-listed bank based in Sofia in Bulgaria, and is focused on small to medium sized enterprises.
Media reports in Bulgaria suggest the buyer was also likely to take on BACB's outstanding debt.
AIB wants decision on interest payment
AIB has asked the High Court to determine whether it should pay interest due on bonds which are the subject of a legal challenge by an investment firm.
Aurelius Capital is challenging AIB's decision to impose losses on some of its subordinated, or junior, bondholders.
AIB said that if the challenge were successful, interest on these bonds would be due on June 25. AIB wants the court to declare that its obligation to pay the interest is suspended, pending the outcome of the Aurelius case.
The hearing requested by AIB will take place on Friday. AIB says it will pay the amount due to the agent for the bonds, Citibank, but will instruct it to hold the money until the court's decision.

Thats one hell of a loss in 2 years

Pdfile

to be fair... the bulgerian bank has big debt's and bulgeria is noramlly just the place to see your stolen car in.

red menace

All the more reason not to touch the toxic sludge bucket in the first place
,

Elmidena

Does the AIB ever get anything right??

JONJO THE MISER

You couldn't make it up.

Pompey Magnus

Ah now no need to exagerrate, it wasn't a €216m loss, they did make €100,000 back so it was really just a €215,900,000 loss.

I hope the negotiators make sure to give themselves a generous bonus for achieving such a deal, we wouldn't want their skills going unrewarded and have them headhunted by the big financial institutions in London or New York.

Executive Steve

red menace wrote: »

http://www.rte.ie/news/2011/0622/aib-business.html



Thats one hell of a loss in 2 years

It gets better too - apparently "Businesswoman Tsvetelina Borislavova" is the girlfriend of the Bulgarian Prime Minister...

orourkeda

superb

daveyboy_1ie

What annoys me most about is they were bought in 2008. At a time when the worlds banking systems were collapsing AIB buy a 49.99% stake in a Baltic state faltering bank. How could they possibly think this was a good investment? Something stinks here. The fact the debt was almost immediately written off shows how bad an investment it was

Can I buy my mortgage for €75.87

General General

daveyboy_1ie wrote: »

What annoys me most about is they were bought in 2008. At a time when the worlds banking systems were collapsing AIB buy a 49.99% stake in a Baltic state faltering bank. How could they possibly think this was a good investment? Something stinks here. The fact the debt was almost immediately written off shows how bad an investment it was

I don't think Bulgaria is in 'the Baltics'.

I'm guessing that when this acquisition was made in 2008, someone questioned the price paid, & I am guessing that they were told that the acquisition was a far sighted move & that 'these shares will look a bargain within five years'.

Well, they got that bit right. What they left out was who got the bargain...

Itsdacraic

General General wrote: »

I don't think Bulgaria is in 'the Baltics'.

Well AIB managed to make a baltics of it

Itsdacraic

Itsdacraic wrote: »

Well AIB managed to make a baltics of it

Yes they made a complete Balearics out of it

castor 1

They are some bunch of incompetent fools !
Gambling like a drunk in a casino.

Pompey Magnus

castor 1 wrote: »

They are some bunch of incompetent fools !
Gambling like a drunk in a casino.

The difference is that the drunk in a casino gambles with his own money, these guys were gambling with ours.

SeaFields

If the roles were reversed I could see AIB buying the worthless shares back for €261m

Daegerty

Pompey Magnus wrote: »

The difference is that the drunk in a casino gambles with his own money, these guys were gambling with ours.

And the worst of it is we're going to have to pay a property tax to dig them out of the trouble. If the property tax won't pay it they'll have a shed tax, and when the shed tax comes in I'm fucked

even though they only know about the 1/9th of the sheds that are above the ground It would still eat up all my dole

jimthemental

SeaFields wrote: »

If the roles were reversed I could see AIB buying the worthless shares back for €261m

It's already in the pipeline I'd say, they're just that incompetent.

ejmaztec

Sunshine! wrote: »

Does the AIB ever get anything right??

Yes, they managed to offload their bad debts onto some poor people.:(