IL&P shareholders reject State recapitalistion - RT News

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IL&P shareholders reject State recapitalistion

Updated: 12:07, Wednesday, 20 July 2011 Shareholders in Irish Life and Permanent have voted against a State money into the company the EGM has been told.

Chairman Alan Cook said the proxy votes counted so far meant shareholders. Mr Cook is to inform the Minister for Finance Michael Noonan of the

Irish Life and Permanent - EGM votes against recapitalisation motion

The development could force the Government to take legal action t money from the State which would have the effect of wiping out exi

At the EGM Mr Cook said there was no incentive for shareholders t Shareholders applauded the outcome of the vote.

The company was seeking backing for a motion to allow the Government put money into the bank which would give the S

Earlier, the European Commission had granted temporary approval, under EU state aid rules, to a recapitalisation worth u

The Commission said it will take a final decision on the state measures in favour of IL&P on the basis of the new restructu submit by the end of this month to take account of this additional state support.

Irish Life and Permanent is made up of two parts - a bank called Permanent TSB and a life assurance company called Iri

The company's problem has been its bank, which was the largest provider mortgages during the boom. It is that exposure resulted in the Central Bank requiring the company to raise 4 billion to cushion it against bad loans. The necessity of State money will result in the Government taking almost full control of Irish Life and Permanent. A group of rebel shareholders had been gathering support to vote against the motion today. They objected to their stake wiped out.

The shareholders' vote against the motion means the Government must go to court to ensure the company has the requi

http://www.rte.ie/news/2011/0720/ilp-business.html?view=print

20/07/2011