Bank of Ireland successfully raised €580 million of equity today as part of a deal to repay €1.8 billion of its State bailout, the Irish Times reported. Under its original €4.8 billion bailout back in 2009, Bank of Ireland had been entitled to purchase the 1.8 million preference shares back from the Government at €1 each before March 31st, 2014. After that date, the price would have risen to €1.25 a share, which would increase the total cost to the bank to €2.25 billion. Today’s issuance will redeem €537 million of the Government’s shares.

The legal action by the liquidators of stockbroking firm Bloxham over alleged underinsuring of the firm has resumed at the High Court after efforts to mediate failed, the Irish Times reported. The sides had last week taken up a suggestion by president of the High Court, Mr Justice Nicholas Kearns, to consider mediation but they told the judge yesterday that it had not worked and the case was proceeding. The liquidators have sued the firm’s former insurance broker, Robertson Low, for more than €15 million damages arising from Bloxham allegedly being “chronically underinsured”.

Changes to legislation reducing the State’s bankruptcy term from 12 years to three were announced today by Minister for Justice Alan Shatter, the Irish Times reported. Announcing the package of measures, the Minister said they “complete the reform of our personal insolvency and bankruptcy legislation”. Mr Shatter said the measures “will address the circumstances of insolvent debtors”. “Critically, there will now be automatic discharge from bankruptcy after three years from the date of adjudication – a significant reduction from the current 12 years,” he said.

Bank of Ireland’s capital adequacy ratios have suffered a sharper than expected drop after the Central Bank of Ireland said following an industrywide review that the Bank of Ireland needed to make extra loan loss provisions, the Irish Times reported. The health checks, carried out just before Ireland exits its EU/IMF bailout, are seen as a preview for the European Central Bank’s (ECB) own tests of euro zone banks next year, when capital holes running to 10s of billions of euros are expected to be uncovered.

Irish clothing retail chain A-Wear has fallen into receivership, with some of its stores set to close, Just Style reported. Ken Fennell of Kavanagh Fennell has been appointed receiver to the business, less than two months after Latzur Ltd, which trades as A-Wear, entered examinership. Fennell said the initial examinership process was aimed at putting the business on "a sustainable footing", and protecting "as many jobs as possible". Sales projections for the business in the intervening weeks, however, did not materialise, Fennell said, with "no viable investment proposal forthcoming".

A borrower has had 70 per cent of a six-figure debt written off as part of the country’s first debt settlement deal under the new personal insolvency regime, TheJournal.ie reported. In what is the first debt settlement arrangement in the country since the new regime came into force earlier this year a deal has been concluded between the debtor and what’s believed to be a number of creditors. It is understood that the debtor, based in the north west of the country, had an unsecured debt for a six figure sum and was unable to meet their obligations.

BWG, the operator of the Spar and Mace retail brands, yesterday concluded a debt restructuring with a consortium of five lenders that will see an estimated €100 million wiped from the group’s property borrowings, the Irish Times reported. The company, which had debts of about €300 million before the restructuring, has finalised a five-year arrangement with its lenders Bank of Ireland, AIB, Ulster Bank, Bank of Scotland (Ireland) and Blackstone.

The main banks have agreed a protocol to deal with legacy small and medium enterprise (SME) debt that they are planning to implement from January 2nd. Agreed under the auspices of the Irish Banking Federation, the protocol will deal with SMEs who are multi-banked – have loans with a number of lenders – and in arrears with their debts, the Irish Times reported. Details of the protocol emerged at the IBF’s annual conference yesterday. IBF president John Reynolds said Irish banks were “committed” to tackling legacy SME debt to help these companies become viable again.

The taxpayer will step in to cover half of a private pension fund if both the pension fund and the employer become insolvent, the Irish Examiner reported. New pensions rules being brought forward by the government will see the State cover half of the deficit in a pension fund if the employer is closing down. The rules are an attempt to avoid a repeat of the Waterford Crystal case where workers had to go to the European Court of Justice to secure their pensions.

The special liquidators of Irish Bank Resolution Corporation yesterday offered the final tranche of loans for sale to interested parties. The loans form part of Project Stone, a €9.3 billion portfolio of loans that has been put up for sale, the Irish Times reported. These are believed to include borrowings held by successful businessman Denis O’Brien, and financier Niall McFadden, along with loans connected with the Blackrock Clinic.