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

Reuters

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:

  • 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.
    May says mosque incident being treated as a potential terrorist attack

    May says mosque incident being treated as a potential terrorist attack

    Finsbury Park mosque was once a notorious hub for radical Islamists but has entirely changed in recent years under new management. I tried to stop him (the suspect), some people were hitting him but I said stop him and keep him until the police came.

    W2W4: Best bets for second half of US Open

    Despite the scorecard battle, Leishman says it's the most comfortable he's been at a major. "Just didn't execute, unfortunately". Day , needing a miracle to get back into contention after his opening 79 carded a three-over-par 75, leaving him 10 over.
  • Driver in London Crash ID'd as 48-Year-Old Man

    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.
    Former Chelsea midfielder Oscar triggers mass brawl in Chinese Super League encounter

    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.

    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.
  • Chelsea may never be able to replace John Terry - Roberto Di Matteo

    Harry Redknapp confirmed that Blues have made an approach for Terry which would see him become the highest-paid player in the club's history.
    Israeli police officer critically injured in Jerusalem stabbing, 2 attackers killed

    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".
    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".
  • 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.

    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.

    TD Asset Management Inc. Sells 20227 Shares of Synchrony Financial (SYF)

    The Company's revenue activities are managed through three sales platforms: Retail Card, Payment Solutions and CareCredit. Finally, Oppenheimer Holdings, Inc. began coverage on Synchrony Financial in a research report on Tuesday, April 11th.


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.

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.

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.

Brexit talks oficially kick off as United Kingdom hopes for 'happy resolution'
May's government said it was "confident it can achieve a bold and ambitious deal that will work in the interest of the whole U.K". The move backfired, May lost her Conservative majority in the vote and has been fending off critics of her leadership ever since.

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.

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.

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.

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 .

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.

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.

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.

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".

Taylor Swift To Release Entire Discography To Spotify
But music experts believe there is something more to Swift's return to these streaming platforms other than gratitude for fans. Especially when someone tries to assassinate my character with little girls [their respective fan groups].

Top EU lawmaker says UK's aims a mystery
While Britain's economy has shown unexpected resilience since the Brexit vote, there are signs of weakness. That may change as negotiations begin, according to Bloomberg's Anooja Debnath.

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.