IL&P recapitalisation claim

FRESH claims from rebel shareholder, Piotr Skoczylas, that Irish Life & Permanent (IL&P) can be recapitalised through private investment is unlikely to stop the Government virtually nationalising the group later this week.

Mr Skoczylas — who was, pending Central Bank approval, voted onto the IL&P board by disgruntled shareholders at last week’s extraordinary general meeting (EGM) — yesterday sent an open letter to the Department of Finance, the NTMA, the Central Bank and the IL&P board stating that private investors are still interested in putting money into the business.

Mr Skoczylas — of Maltese-based investment fund, Scotchstone Capital — said that IL&P’s shareholders could find, within 30 days, private investors to participate in the group’s recapitalisation efforts.

“We have already spoken to one investment bank and they have confirmed that there are private investors interested in participating in the recapitalisation of Irish banks, of which IL&P is a leading franchise.”

The letter added that “there is still time to avoid costly litigation”.

As part of the latest recapitalisation round for the Irish banks — which must be met by July 31 — IL&P needs to raise a further €4bn. It is expected that as much as €3.8bn of this will come from Government, giving the state a 99% stake. At last week’s EGM, IL&P shareholders also voted against the Government’s recapitalisation plan. Finance Minister Michael Noonan said that the nationalisation plan must proceed and he is expected to seek High Court approval for the move sometime this week.

A Department of Finance spokesperson yesterday added: “While noting that shareholders have voted against the proposed recapitalisation, the minister remains committed to recapitalising IL&P to the levels set by the Central Bank within the timeframe set in the Programme of Assistance.”