High Court issues order to force IL&P to accept €2.7bn from State

The High Court has made an order forcing Irish Life and Permanent to accept a €2.7bn cash injection from the public purse.

Shareholders at IL&P voted against State intervention last week, opting instead for private recapitalisation.

At last week's EGM, shareholders at Irish Life and Permanent made it clear they did not want their investments wiped out. They opposed State recapitalisation.

They are seeking private investment but under the terms of the EU/IMF bailout, IL&P needs a capital injection of €2.9bn by the end of this month.

The court heard there is no evidence of any alternative source for the money, other than the public purse.

€2.7bn will come from the State, with €200m from Irish Life and Permanent's own resources.

Finance Minister Michael Noonan has now secured what was described in court as a necessary order to push this through under the Credit Institutions Stabilisation Act.

Shareholders at Irish Life and Permanent have five working days to mount a legal challenge to the order.

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