IL&P shareholders launch legal challenge

Two Irish Life & Permanent shareholders have commenced legal challenges against the Government’s move to recapitalise IL&P.

Last week at the High Court the Government secured orders allowing them to inject €2.7bn into IL&P, taking control of the bank.

The Government went to the High Court after shareholders in the bank had earlier rejected that proposal.

The State's investment gives it a stake of 99% in IL&P and will wipe out the shareholders' investment.

Today, in what was a brief application before the High Court, two shareholders - Mr Gerald Nigel Bunting and Horizon Growth NV, represented by Mr Niall Buckley Bl - informed Mr Justice Michael Peart they had served motions aimed at overturning or varying the orders obtained by the Minister.

The shareholders' actions are against the Minister, who was on notice of today's applications.

Under the 2010 Act any bondholders, shareholders or creditors of the bank are required to serve notice any legal challenge within five working days of the making of the order.

Mr Justice Peart adjourned both motions to a date in September, for mention only. It is hoped that the full hearing of the challenge will be heard in early October when the new legal term commences.