EBS said today it has received €100 million from the Government in a move which brings the institution under State control.
The funding, which comes in the form of Special Investment Shares, is the first instalment in a €875 million capital injection.
The EBS requires the funds to bring capital reserves up to the Financial Regulator’s new levels to cover anticipated bad loans and losses from transferring €1 billion in loans to the National Asset Management Agency (Nama).
The building society has held talks with an investment consortium led by Cardinal Asset Management and including US private equity firm JC Flowers, which has a track record of investing in distressed financial institutions.
The EBS, which was due to hold its AGM today, said it may buy back debt.
It is expected to submit its viability plan to the European Commission under state aid rules over the coming weeks ahead of the initial expected delivery at the end of June.
There goes another €100 million… YM get onto the Germans!
is the first instalment in a** €875 **million capital injection…
Hold on a minute isn’t EBS a mutual ? I have some cash in there , don’t I have a vote on this ?
It was all voted through the last time they sent out forms a few months ago, if I recall correctly.
So in answer to your question " don’t I have a vote on this ? ", no, you don’t. Not any more.
We’ve been demutualised!
This is news to me,are you sure of this?
I have more or less the same question.
I have a few quid in there for carpetbagger reasons.
So now it looks to me that possibility is gone.
No chance of a few quid via a demutualisation.
Anyone know this for sure?
When this was voted through the members lost all power.
Once Lenny got his hands on the Special Investment Shares the jig was up. The only hope was that they could raise the capital privately. Once that failed Lenny had the authority to inject capital and take control and there’s nothing anyone could do about it. The time to resist this was the SGM.
I voted no, for what it’s worth.