I’ve not been keeping my eye on this ball very closely and now need to do some updating. The Co-op Group plans to redeem £200 million of its Eurobonds next month as, it seems, part of the run up to the new plan for the Bank.
The Group has also announced a new committee to look at solutions which has been seen by the markets as a way of developing a Plan B to appease the Vulture Funds that Paul Gosling discussed in his Co-op News article and the Guardian picked up. This FT story on 20.09.13 alerted me to some of it.
This website has covered the Eurobond redemption and suggests it is to do with potential “cross default”. As it says “This means that if the group puts the bank into run-off, it would cause default of the bonds from the group itself.” Hence those bonds are to be redeemed.
So Plan B is being worked out as we speak……..
© Ian Snaith 2013 This work is licensed under the
This work is licensed under a Creative Commons Attribution-ShareAlike 2.0 UK: England & Wales License.