Dissident IL&P shareholder moves to overturn €2.7bn recapitalisation

The Government’s belief that it has drawn a line under its banking crisis will be tested this week when a dissident Irish Life and Permanent shareholder attempts to overturn the bancassurer’s recapitalisation and effective nationalisation.

The Government used sweeping new bank laws to inject €2.7 billion into IL&P in July after shareholders originally voted down its plans to take a 99% plus stake and help fill a €4bn capital requirement that emerged in the aftermath of the EU/IMF bailout.

Piotr Skoczylas, a fund manager who led the shareholder revolt, takes his battle with the State to the courts today in a move he says could have repercussions for the Government’s much-lauded €63bn sector-wide recapitalisation.