Allied Irish Banks Plc is preparing to take legal action against thousands of homeowners, estimating that more than 20 percent of borrowers behind in repayments are opting not to pay in the hope of winning debt relief.
Allied Irish Banks Plc, the state- owned recipient of a 21 billion-euro ($28 billion) bailout, is easing terms on 2,000 mortgages a month, aiming to clean up its troubled loan book in time to woo new investors by 2014.
Irish bankers preparing for the biggest wave of foreclosures in the nation’s history are struggling with how to dispose of the homes as the central bank pressures them to go after owners of investment properties.
New York investment banker Carlos Abadi was among the losers when Allied Irish Banks Plc imploded, wiping out $6.3 billion of junior bonds. Two years later, he’s willing to buy the lender’s debt again.