White & Case and Allen & Overy (A&O) are advising on a dispute between the Bank of Ireland (BoI) and a group of investors over a proposed debt-for-equity conversion.

The move, part of a 'burden-sharing' move by the Irish Government to spread the costs of its bank recapitalisation plan, has seen White & Case instructed by a committee of bondholders which includes Appaloosa Management, Varde Partners, QVT Financial and Marathon Asset Management.

The group, which jointly holds over $1bn (£619m) of subordinated debt, is fighting moves to 'haircut' their investments in Allied Irish Banks and BoI's subordinated debt.

BoI, which is being advised by A&O, has offered to buy back the bonds at a discounted rate or swap them for stock.

White & Case global head of restructuring and insolvency Tom Lauria is taking the lead role for the bondholders, who claim that the proposals are contrary to opinions by the European Commission and are an abuse of new Irish banking laws.

The partly Government-owned bank is so far the country's only lender to avoid falling into majority state control. Depending on the take-up of the rights issue and debt swap, the government's stake, which currently stands at 36%, could rise above the 75% level, at which point its shares would delist from the Irish and London Stock Exchanges.