16th Sep 2013 16:35
LONDON (Alliance News) - CLS Holdings Monday said it has written to Co-Operative Bank to propose that a committee be established before the bank goes forward with its financial restructure.
The property management firm's concern comes after it was reported Friday that the bank's lenders had demanded capital expenditure cuts and greater protection for loans in return for support on the scheme.
The lenders, led by Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland, reportedly made significant progress in helping the Co-Operative mutual fill a GBP1.5 billion capital gap in its banking arm.
The Co-Operative would contribute GBP1 billion to the bank by selling off its insurance assets and bondholders would suffer a further hit of about GBP500 million on their investments. This would increase the group's debt.
The firm holds GBP4.3 million in Co-Operative Bank bonds.
CLS shares closed at 1,153.00 pence Monday, down 6.00 pence or 0.5%.
By Anthony tshibangu; [email protected];
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