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Co-op considers banking arm rescue plan
by Daniel Grote on Jun 03, 2013 at 06:52
The Co-operative is considering cuts in the coupon paid to its bank’s junior bondholders, as it looks to rescue its ailing banking arm, according to reports.
The Co-op could also partially swap its £1.3 billion subordinated debt for a new type of shares as part of the restructuring.
The Financial Times said the bank was working through its options with advisers UBS and Allen & Overy and was in talks with the Prudential Regulation Authority to agree its regulatory capital requirements and the measures to meet them.
The Co-operative Bank’s capital hole is estimated to stand at between £800 million and £1.8 billion. Last month its credit rating was downgraded to junk status, forcing chief executive Barry Tootell to leave.
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by Michelle Abrego on Dec 05, 2013 at 16:07