Co-op.gp. 25 Discussion Threads

[ukneonboy] 14/2/2017 18:58

It now transpires that the "For Sale" sign has been put up on the Coop Bank, due to the fact that the bank itself is still losing money and haemorraging both personal customers and business customers, at an alarming rate.

This is especially bad news for Cooperative Group which STILL owns 20% of the Coop Bank and still has various underwriting indemnities and guarantees secured on the Cooperative Group's other business property assets.

Probably now time to change your bank, if you currently bank with Coop Bank, but more worryingly if you still hold the Coop Final Repayment Notes 2025 (42TF), you might want to get rid off them quickly, before the stampede starts.

[montyhedge] 30/1/2017 16:00

Wow sounds bad news.

[ukneonboy] 30/1/2017 12:31

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.

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