Tue, Apr 28, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Hedge fund creditors lead the way at Co-op Bank rescue

Monday, October 21, 2013

Beverly Chandler, Opalesque London:

Financial news in the UK was dominated this morning by the update that The Co-Operative Group seems increasingly unlikely to retain control of its 'ethical’ high street bank, Co-Op Bank, despite a £1.5bn ($2.39bn) rescue plan. Opposition came from creditors, led by hedge funds, Silver Point and Aurelius, advised by investment bank Moelis. The funds and other creditors own 43% of "lower-tier-two-capital" bonds and other superior bonds.

Reporting for the BBC, business editor Robert Peston, said the Co-op Group hopes the bank's co-operative ethos can be protected. The bank hit problems with losses, bad loans and an expensive IT project and was finally scuppered by the compensation costs for mis-selling PPI insurance, estimated to stand at £100m, which were greater than it had expected.

In addition, The Financial Times this morning reported that The Co-Op Group was considering a compensation fund for any retail investors who would be put in financial difficulty by a proposed restructuring of its banking arm’s bonds.

Peston reports that institutional investors, led by hedge funds, favoured a plan in which their bonds would be converted largely into Co-op Bank shares, ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. U.S. does not want hedge funds to invest in offshore re-insurers for tax purposes[more]

    Komfie Manalo, Opalesque Asia: The U.S. Treasury Department on Thursday introduced a new rule aimed at limiting hedge funds’ ability to reduce their tax bills by investing in insurance companies in offshore tax havens. As a general rule, the U.S. tax laws does not allow hedge funds to use off

  2. Ruling: Hedge funds suing Argentina can have access to bond offering details[more]

    Komfie Manalo, Opalesque Asia: U.S. District Judge Thomas Griesa in Manhattan ruled yesterday that hedge funds are entitled to details of a recent bond offering by Buenos Aires, reports

  3. Fund managers express concern of overvaluation in both equity and bond markets[more]

    Komfie Manalo, Opalesque Asia: According to the BofA Merrill Lynch Fund Manager Survey, investors see growing overvaluations in both

  4. Update: Wall Street has strong feelings about Jon Corzine trying to make a comeback[more]

    From Businessinsider.com.au: Former New Jersey Governor Jon Corzine is thinking about starting his own hedge fund, according to the Wall Street Journal, and because of the way his last firm imploded, Wall Street has strong feelings about that. “Truth is the larger seeders would never give him money

  5. Opalesque Exclusive: Cybersecurity and hedge funds - A manager’s experience, Part Four[more]

    Benedicte Gravrand, Opalesque Geneva: Ruane, Cunniff and Goldfarb, Inc. used to have their own IT infrastructure. Todd Ruoff, Executive Vice President in charge of trading, operations and technology, was responsible for its maintenance. Then he started looking at outsourced providers a couple of

 

banner