Irish government objects to Malta-based investor’s standing in ‘Irish Life’ bailout case

A lawyer for Ireland's finance minister Michael Noonan this morning asked a Dublin judge to rule that Piotr Skoczylas - a Polish-British citizen and fund manager at Malta-based Scotchstone Capital Fund Ltd - is not entitled to represent the fund, which is challenging the Irish government's move to take control of Irish Life & Permanent Plc.

Piotr Skoczylas had been elected as director to the board of Irish Life & Permanent Group Holdings plc, in which Scotchstone Capital Fund Ltd is a shareholder.

A four-day hearing into the €2.7bn bailout of Irish Life & Permanent (IL&P) began today in Dublin as a group of shareholders protested against the massive dilution of their stake in the bancassurer.

The shareholder grouping is arguing argue that it was unreasonable and unlawful for finance minister Michael Noonan to force the plc to accept a €2.7bn state handout and cede 99.8 percent of the group's ownership to the Irish State.

The shareholders are challenging the reasonableness of the assumptions made last year through banking stress tests, which imposed massive capital demands on IL&P to cover potential losses at its banking subsidiary Permanent TSB.

The Irish government is vigorously defending the institution's bailout.

The Irish ministry of finance meanwhile questioning the standing of the plaintiffs taking the case.

Last October the finance ministry asked the courts to dismiss a challenge by one plaintiff, Horizon Growth NV, on the basis that the fund was "not a member" [or shareholder] of Irish Life & Permanent.