Noonan secures court order to inject €2.7bn into IL&P

MINISTER for Finance Michael Noonan has secured a High Court order permitting an injection of €2.7 billion in public funds into Irish Life & Permanent by July 31.

The consequences for IL&P were it not to be recapitalised by July 31 were “potentially catastrophic” and recapitalisation was also in the state’s interests, a senior Department of Finance official said.

The court order allows for a maximum state investment of €3.8bn but it is hoped that will not be required and the institution will raise around €1bn through the sale of Irish Life and a further debt buy-back exercise, the court heard.