Home

Co Operative Groups Troubles are not limited to its Bank

25-Mar-14
Co Operative Groups Troubles are not limited to its Bank

Co-operative Bank of trouble on their full -time owner, Co-operative Group, its impact is stressed on Monday complex reorganization of the broader population is forced into a relatively small debt.
The Group, which owns supermarkets, funeral parlors, pharmacies and banks, are now only 30% being rewritten because of a violation of the terms or conditions of contract risk bonds attached to the IOUs.
The small size of the bond issue - only 50 million pounds. Even so, the group was asked to provide, because the connection to the debt of the group is not permitted to be higher than 125 % of the limit value of the social bond coupon ( or interest rate ) bondholders.

Refers to a part of the bank's reserves can no longer be counted as the Group for accounting purposes of the net - may reduce - Bank stake to 30 % reduction in . Thus, approximately 1.4 billion pounds of debt risk breaking promises bondholders.

But the trouble did not blow the bank on the Group, its £ 1.4 billion of debt as the only two-thirds of the business bank loan bonds and one-third of an impact.

Including the loss of about 1.3 billion pounds of banks, the group is expected to be over 20 billion pounds next month loss to the police, when connected to Somerfield’s acquisition of the remaining goodwill in 2009 - more than 800 million pounds in the last year's figures - can also be written down.
Scheduled for Wednesday's financial results of both the Bank and the Group in 2013. However, the Group Chief Executive Euan Sutherland starting this month means mutual number has been postponed to April 17. The objective of the bank is through April 8 releases.

Sutherland has warned the group number will be “ugly, but a temporary stand-in Richard Penny cook will have to find an accurate description of the figures next month. Penny cook will face about how long he intends to stay in the problem. When he was appointed Chief Financial Officer, was appointed last May he described as a "temporary." He is said to have agreed to become chief operating officer Sutherland made ??a replacement. However, finding a new boss is on hold, a large-scale reform of governance throughout the organization recommends the controversial vote until team members.