Co-op Bank dashes hopes of a rescue from an outside bidder

The Co-op provided the update today

The lender said it was in "advanced discussions" with a group of investors over a capital raise.

"The bank notes recent media speculation and confirms that it is in advanced discussions with a group of existing investors with a view to a prospective equity capital raise and liability management exercise", the lender said.

The loss-making bank put itself up for sale in February, and it is understood that a Qatari conglomerate and a Swiss investment firm have hired Barclays to help them put together a bid.

A plan for the GBP700.0 million recapitalisation of the Co-Operative Bank by United States hedge funds has been held up by demands from the Co-Op Group for stronger pensions protection, reported Sky News.

Co-op Bank put itself up for sale in February due to continued troubles after having to be rescued from the brink of collapse by a group of United States hedge funds in 2013 following the discovery of a £1.5bn hole in its finances.

That leaves the U.S. hedge funds that own 80% of the bank, Blue Mountain Capital Management, Cyrus Capital Partners, GoldenTree Asset Management and Silver Point, to structure a rescue.

The "major obstacle" emerged just days before the bank's bondholders hoped to unveil a £700m recapitalisation of the ailing lender.

A spokesman from the Co-operative Group said: "We continue to be supportive of the bank's process to raise the capital it requires, but are not commenting on the discussions taking place".

Co-op has £800m of liabilities from the Britannia pension scheme after it acquired the building society in 2009, plus a share of the £8bn Co-op Group scheme.

Related News:

  • Several Casualties Reported as Vehicle Strikes Pedestrians in North London

    Several Casualties Reported as Vehicle Strikes Pedestrians in North London

    Numerous victims are believed to have just left evening prayers at the Muslim Welfare House after breaking the Ramadan fast. Transport for London tweeted that Seven Sisters Road was closed northbound at Hornsey Road and southbound at Rock Street.

    US lawmaker shot by anti-Trump gunman showing improvement

    Infection remains a considerable risk in the days and weeks during Scalise's extended hospital stay, Sava said. The statement noted that there would be no further updates on Scalise's condition for the rest of the weekend.
    Standard Life eyes merger with Scottish Widows

    Standard Life eyes merger with Scottish Widows

    Skeoch said: "We are - yes, you are right in terms of becoming more of a world-class investment company than a life assurer". The deal requires the backing of at least 75% of Aberdeen shareholders and 50% of Standard Life investors on Monday.
  • Pakistan enters Champions Trophy final after beating England by 8 wickets

    Meanwhile Rumman Raees, in for injured fellow left-arm quick Mohammad Amir , took two for 44 on his ODI debut. India thrashed Pakistan by 124 runs in the teams' Champions Trophy tournament opener at Edgbaston on June 4.

    Top three miss US Open cut, leaving four-way tie for the lead

    More important, he was happy with how he played Friday and remained optimistic that he could carry that over to the weekend. That should have affected everyone the same way, but it was particularly troublesome for the field's elite players.
    DA aims to retry Bill Cosby after mistrial

    DA aims to retry Bill Cosby after mistrial

    An eighth woman withdrew her lawsuit and a federal judge dismissed a ninth accuser's case, finding her complaint inadequate. Steele declined comment on a statement from Cosby's wife, Camille, which called him "heinously and exploitively ambitious".
  • Police release man held in connection with Manchester attack

    Police release man held in connection with Manchester attack

    The 24-year-old was arrested after the attack at Manchester Arena, as police looked for evidence of a terror network in the area. In the United Kingdom , suspects can be held without charge for 14 days if they are arrested under the Terrorism Act.
    7 dead, heavy damage to US Navy ship in collision

    7 dead, heavy damage to US Navy ship in collision

    The Fitzgerald is an Arleigh Burke-class guided-missile destroyer commissioned in 1995. Bryce Benson, suffered a head injury in the collision and was airlifted to the U.S.

    Protesters demand answers over fire tragedy

    Commander Cundy further informed that the police investigation into the fire "will take weeks, it may take longer than that". They said officials have failed to give enough information and support to those who have lost relatives and their homes.
  • Samsung to launch English version of Bixby voice assistant

    Samsung to launch English version of Bixby voice assistant

    Apple , however, is also reportedly having difficulties featuring an on-screen fingerprint sensor in its upcoming iPhone 8 . January is tipped to be the launch window for the company's next flagship phone and feature an OLED-based display .

    India Thrash Pakistan 7-1 For Third Straight Win

    Another deflection from Talwinder, this time a much better one, directed into goal when the ball was in the air, made it 3-0. Apart from the brace from Akashdeep Singh , Harmanpreet Singh and Talwinder Singh also scored braces for their side.

    One dead, 10 injured in London mosque incident

    Sky News reported that police said the incident happened after worshippers were leaving the Finsbury Park mosque after prayers. She told the BBC that the van seems to have hit people who were coming out of the Finsbury Park mosque after prayers finished.


Most liked

Education Dept Makes Big Change to Civil Rights Investigations
The group's statement highlights a number of concerning proposed staff and budget cuts across a number of government agencies. The Supreme Court has yet to rule on the issue.

Driver in London Crash ID'd as 48-Year-Old Man
The attack "intentionally" targeted worshippers, according to Harun Khan , Secretary General of the Muslim Council of Britain . A van driver who was arrested by police has been taken to hospital and is subject to a mental health assessment.

Kobe's star on the rise after big 3x3 World Cup opening performance
But they lost to the US narrowly, while Serbia progressed to bag the second title, beating the Americans 21-16. Kobe Paras registered a total of 15 points in the Philippines' games against Romania and France.

Former Chelsea midfielder Oscar triggers mass brawl in Chinese Super League encounter
When order was restored after pushing and shoving, R&F's Li Tixiang and Shanghai's Fu Huan were dismissed and three others were booked.

Antero Midstream Partners LP (AM) Stake Decreased by Samson Capital Management LLC
Finally, ING Groep NV acquired a new position in EQT Midstream Partners, during the first quarter worth approximately $15,342,000. Hirtle Callaghan & Co LLC bought a new position in shares of EQT Midstream Partners, during the first quarter worth $138,000.

Varadkar to argue for special deal on North
The DUP dislikes Jeremy Corbyn because of his support for the Northern Irish Sinn Fein Party, which is the DUP's main rival. May's Great Repeal Bill would mean United Kingdom companies can align rules governing the European partners.

Ronaldo scores twice as Real Madrid win Champions League title
Real Madrid coach Zinedine Zidane quickly sought out Lucas Vazquez on Saturday night after their Champions League triumph. Every single player on this roster had an iconic moment throughout the season, no matter if they were reserves or not.

Real Madrid CF need you: Zinedine Zidane to Cristiano Ronaldo
The 26-year-old told the official website of the Confederations Cup: "It goes without saying that he's a great player". United would not want to pay that for the 32-year-old but keeper David De Gea , 26, could be used as a bargaining tool.

President Trump confirms he is being investigated over Comey firing
The Twitter attacks came as Vice-President Mike Pence hired a personal lawyer to represent him in the intensifying investigation. Rosenstein also has the authority to fire Mueller, a point he made in Senate testimony earlier this week.

CT 2017: Bustle fades from Kolkata roads before India-Pakistan final
Credit to the team management for boosting us well. "We need to move on and learn from our mistakes", Kohli said. Sarfraz also lauded his bowlers for their impressive performance against a strong Indian batting line-up.

Israeli police officer critically injured in Jerusalem stabbing, 2 attackers killed
After terror attacks, pro-Israel groups may criticize wire services for misleading headlines that focus on Palestinian casualties. In its statement IS said the attack was "revenge for the religion of Allah and the sanctities of the violated Muslims".

UK official: Mosque attack treated as terrorism
Meanwhile, Prime Minister Theresa May has said the police were treating the van incident "as a potential terrorist attack ". Metropolitan Police Deputy Assistant Commissioner Neil Basu said: "This is being treated as a terrorist attack".

Champions Trophy Final: Photos from Pakistan's triumph over India
The Pakistan openers capitalized on the lucky break by attacking Bumrah but Bhuvaneshwar Kumar held his own at the other end. Pandya (76 off 43 balls) was dealing in boundaries at that point, having already hammered six sixes and four fours.

Special counsel investigating Kushner business dealings
In a statement to the Washington Post , Jamie Gorelick, Kushner's lawyer, seemed brushed off the prospect that Mueller would be looking at Kushner's finances.

Cink among four sharing PGA St. Jude lead
Open champion Retief Goosen and Chez Reavie each shot a 66 on the par-70 TPC Southwind course. Schwartzel shot a woeful 4-over 74 Saturday, but bounced back with a 4-under 66 in Round 4.