UK. The Co-operative Bank to raise new capital. Pension Scheme, lynchpin of a £700m deal
The Co-operative Bank has confirmed it is in “advanced discussions” with a group of existing investors to raise new capital.
Responding to recent media speculation, Co-op Bank has confirmed talks are progressing with a group of hedge funds on a new deal to recapitalise the bank as well as a “liability management exercise” to swap debt for equity.
Sky News reported last week The Co-op Group was locked in a stand-off with the investors about a £200m pension deal, which the bondholders believe is a “good deal” for the pensioners though Co-op Group wants the offer upped to £300m to win support.
The bondholders want to scrap Co-op Bank’s “last man standing” pension arrangement which guarantees joint pension scheme liabilities would be met if Co-op Group, which still has a 20 per cent stake in Co-op Bank, or the bank itself went bust.
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