Wed, Oct 18, 2017
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. Regulatory - David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge, Carried interest tax: How much does it matter?, Odey sees 'terrifying' mix in MiFID, tapering, asset values, Hedge funds come together to share cost of MiFID and research, SEC turns up the heat on U.S. investment advisers, India's Sebi asks hedge funds to report investments in commodity derivatives[more]

    David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge From CNBC.com: David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off. Stockman, the R

  2. North America - Puerto Rico rejects loan offers, accusing hedge funds of trying to profit off hurricanes[more]

    From TheIintercept.com: Puerto Rico has rejected a bondholder group's offer to issue the territory additional debt as a response to the devastation of Hurricane Maria. Officials with Puerto Rico's Fiscal Agency and Financial Advisory Authority said the offer was "not viable" and would harm the islan

  3. Investing - WPP targeted by short-selling American hedge fund, Sun co-founder sells secretive hedge fund on big chip trade[more]

    WPP targeted by short-selling American hedge fund From Cityam.com: An American hedge fund has mounted a bet against WPP, the world's largest advertising group, with a trade worth almost £90m. Lone Pine Capital has built a short position worth 0.51 per cent of the FTSE 100 company,

  4. Hedge funds up as industry adjusts to rising rates[more]

    Komfie Manalo, Opalesque Asia: Hedge funds have reshuffled their portfolio after nearly four weeks of rising rates as the Lyxor Hedge Fund Index was up +0.2% from 19 September to 26 (+1.1% YTD), fuelled by strong results of global macro funds, Lyxor Ass

  5. Manager Profile - How the world's hedge fund king used 'idea meritocracy' to become a billionaire[more]

    From Forbes.com: In 1982, Ray Dalio made what he calls the biggest mistake of his life. He made a bet that there would be an economic collapse stemming from a debt crisis. And he was wrong. He lost money. He lost his client's money. He had to let people go from his firm and borrow money from his dad