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Co-op sets up team to review alternative capital plans
by Michelle Abrego on Sep 23, 2013 at 07:44
The Co-operative Group and Co-operative Bank have formed an independent committee to consider any third-party approaches to plug its £1.5 billion shortfall.
The bank proposed an exchange offer in July asking junior bondholders to foot £500 million by swapping their existing bonds for new debt in the group and shares in the bank.
The exchange offer is meant to launch in the fourth quarter and is part of the wider capital action plan that includes the group contributing up to £1 billion.
The independent committee will consist of Co-op Bank non-executive chairman Richard Pym, Co-op bank chief executive Niall Booker, and the independent non-executive directors of the bank.
As part of this process it has been agreed that Booker will step aside from his duties as deputy chief executive of the Co-op Group.
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