Government gets green light to pump €2.7bn into IL&P
Published 26/07/2011 | 16:07
Finance Minister Michael Noonan has secured a High Court order to pump €2.7bn into Irish Life & Permanent - effectively putting it in State control.
Shareholders in IL&P voted against a recapitalisation last week at an extraordinary general meeting but it is a requirement of the EU/IMF €67.5bn bailout.
Mr Noonan had already warned he would go the legal route if the shareholders voted against the plan.
IL&P needs €3.8bn to meet higher capital targets set by the Central Bank after the stress tests of the banks in March.
The move will wipe out ordinary shareholders’ interests and the proposals were voted down at the acrimonious meeting last week.
At the same meeting, four proposals tabled by the dissident shareholders, led by Malta-based investment firm Scotchstone Capital, were voted through by more than 60pc of the investors present.