A group of Irish Life and Permanent shareholders have begun legal proceedings to challenge the Government’s decision to recapitalise IL&P.
Last Wednesday, the Government secured a High Court order to inject €2.7 billion into Irish Life & Permanent, taking control of a fifth Irish bank.
The decision to secure a High Court order followed shareholders’ rejection of the proposal at an egm the previous week. The € 2.7 billion injection will leave the State with a stake of more than 99 per cent and will wipe out the value of the shareholders’ investments.
This morning, two shareholders, Gerald Nigel Bunting and Horizon Growth NV, issued legal proceedings against Minister for Finance Michael Noonan to reverse the order.
Under the Credit Institutions (Stabilisation) Act – the sweeping banking legislation introduced last year which the Minister is using for the recapitalisation – the shareholders had five days from the day the order is granted to file a challenge.
The case was put back until September 19th for mention.