Thu, Apr 27, 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. Opalesque Exclusive: Ex-Man manager combines sustainable investing with AI/ML[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Dr. Richard Bateson, quant fund manager and physicist, has recently

  2. Alternative asset firm YieldStreet surpasses $100m of loans funded in less than 8 quarters[more]

    Komfie Manalo, Opalesque Asia: Alternative asset investment platform YieldStreet reported that it has surpassed $100m in loans funded in less than eight quarters from accredited investors and single family offices. YieldStreet was founded by Milind Mehere and Michael Weisz. In a

  3. Investing - Investor appetite for high-growth IPOs to be tested, Apollo boosts fund's stock allowance for 'diamonds in the rough', Hedge funds uncertain over outlook for Hargreaves Lansdown[more]

    Investor appetite for high-growth IPOs to be tested From FT.com: The US listings market is poised for a busy week with deals that will test investors' appetite for high-growth - but lossmaking - companies. Eight new listings are scheduled for this week, the most since October of 2016,

  4. Hedge funds holding Puerto Rico bonds are looking at a long battle[more]

    Komfie Manalo, Opalesque Asia: Hedge funds which bought Puerto Rico's distressed debt bonds are facing the prospect of a long road ahead to recover their investments as the Caribbean island is attempting to use a U.S. Congress-approved rule that allows it to exploit a bankruptcy-like proceedings

  5. Other Voices: "Winner-take-all" dynamics and hedge fund investing[more]

    A growing stream of thinking in microeconomics is the concept of "winner-take-all" dynamics. The idea seems simple. A combination of networking economics and classic economies of scale creates situations where there are just a few dominant firms or economic agents who are able to capture significant