Co-op.gp. 25 Discussion Threads

[pogue] 30/1/2017 12:48

If anyone wants more background and information I suggest this website www.fixedincomeinvestments.co.uk/boards/ where there are many informed investors including the legendary Mark Taber who helped CO OP bond holders obtain a good deal last time though I dont think even he can save the bank this time.

[spittingbarrel] 30/1/2017 12:40

42TE is Co-OP Group NOT Bank

[ukneonboy] 30/1/2017 12:28

According to the Sunday Times 29/01/17 the Bank of England is considering a further intervention into the Coop Bank that COULD lead to the lender being wound-up before the end of 2017.

John Worth, Finance Director of the loss making bank, warned investors in a brief statement last Thursday that Coop Bank was set to fall short of the capital requirements imposed on it, by the Regulator (Prudential Regulatory Authority).

Senior Management at Coop Bank are scrambling to put together another restructuring scheme to pacify the Bank of England and buy more time.

However, Coop Bank is due to repay a £400 million Bond that is due for repayment in September 2017, and this will cause problems for Coop Bank and/or Coop Group.

The Coop Bank apparently has sufficient capital to repay the £400 million Bond but many City observers think it will struggle to raise a new Bond, to replenish its finances.

More worryingly for small shareholders with the Coop 11% Final Notes 2025 and the Coop Instalment Notes 2025, if the Government / Bank of England has to initiate another "Rescue Bail-Out" at the Coop Bank, existing Bond Holders will be wiped out and they do NOT qualify for compensation under the Financial Services Compensation Scheme.

Coop 11% Final Notes 2025 (sedol 42TE) and Coop Instalment Notes 2025 (sedol 42TF) were originally issued back in December 2013, as part of the previous restructuring.

Will the Coop Bank survive ????

Only BoE Governor Mark Carney & the BoE's Prudential Regulatory Authority, can answer that question but in all honesty if you currently hold either the Coop 11% Final Notes 2025 (sedol 42TE) or the Coop Instalment Notes 2025 (sedol 42TF) and DO NOT WANT TO LOSE YOUR CAPITAL IF THE COOP BANK FAILS, then you need to sell and sell quickly.

42TE currently selling @ 122p

42TF currently selling @ 6p

[rob the slob] 30/1/2017 12:11

Yes. From memory, coop group owns only 20% of coop bank since the refinancing was agreed in 2013. The payer of this bonds (unlike 42RQ) is coop group, not coop bank. Prob just initial market overreaction. In support of this, I note very small trading volume this am and some recovery of price being offered. I guess the other factor that may affect the price of these bonds is the perceived risk that coop group bond holders will get drawn into further attempts by coop group to bail out coop bank. However as viability of coop group is not at risk here, I am staying holding.

[pogue] 30/1/2017 10:57

Yes but this is the COOP Group not Bank. Only explanation is the group still owns part of the bank so they will have a write down if Bank goes boom.

[eithin] 30/1/2017 10:42

(The following statement was released by the rating agency) LONDON, January 30 (Fitch) The Co-operative Bank PLC's announcement that it is unlikely to achieve capital guidance set by the UK regulator until at least 2020

[eithin] 30/1/2017 10:37

- 11p ????