IL&P shareholder abandons recapitalisation court action

A SHAREHOLDER in Irish Life and Permanent has “abandoned” his legal challenge against plans by the Government to recapitalise the bank.

Yesterday the court was informed that shareholder Gerald Nigel Bunting of Suffolk in Ipswich, England, had settled his action aimed at overturning or varying the orders obtained by the Minister for Finance on July 26 last.

The order, which allowed the injection of €2.7 billion into IL&P, effectively gave the state a 99% stake in the bank, wiping out the shareholder’s investment.

Mr Bunting had claimed the minister’s actions were unreasonable and unlawful, the shareholders’ stake in IL&P had been overwhelmingly diluted and their rights “have been abrogated without any consultation”.

Lawyers for the minister told Mr Justice Roderick Murphy that Mr Bunting’s action against the minister had been settled.

As part of that settlement it was agreed Mr Bunting would abandon his challenge against the minister’s decision to recapitalise the bank.

The judge agreed to strike out the action against the minister, whilst making no orders for costs.

No further details were revealed in open court.

The court had previously heard that Mr Bunting and his family held a total of 3,030,000 shares in IL&P in a number of different accounts.

Last week Mr Bunting and another shareholder in the IL&P, Horizon Growth Fund NV, served motions aimed at overturning or varying the orders obtained by the minister.

Horizon, which has a registered address at Berg Arrarat on the Caribbean Island of Curacao, holds more than 6,000,000 shares in IL&P which it acquired in the period between February and July 2011.

Earlier this week two other shareholders, Scotchstone Capital Fund and its managing director, Piotr Skoczylas, obtained permission from the court to be joined to the challenge.

The shareholders’ actions were brought against the minister arising out of the decision to go ahead with the recapitalisation of IL&P, after shareholders had earlier rejected that proposal.

Those remaining actions stand adjourned to a sitting of the High Court in September for mention only. It is hoped that the full hearing of the challenges will be heard sometime in October when the new legal term commences.