Britain’s Co-op Bank agrees $900 million rescue package
Britain’s Co-operative Bank said on Wednesday it had agreed a 700 million pound ($897.5 million) financial rescue package with leading investors that will shore up its capital base, ending months of uncertainty about its future.
Investors who own the bank’s debt will pump 443 million pounds into recapitalising its bonds and will also help it raise 250 million pounds in fresh equity, the bank said in a statement.
The bank and parent Co-operative Group have agreed terms to separate their respective pension plans, overcoming a stumbling block after months of negotiations with investors as to who would be liable for the members’ pensions.
loading...
The bank will contribute 100 million pounds over 10 years to its section of the shared pension scheme.
Co-Op Group’s holding in the bank will fall to around 1 percent from 20 percent, leaving the bank’s U.S.-based hedge fund owners in control.
The bank provides banking services to almost 4 million retail and small and medium-sized enterprises.
Britain’s Prudential Regulation Authority said in a separate statement it had accepted the plan, but that implementation of it would be subject to further approvals.
Loading...