THE BAIL-IN of Co-op Bank investors was approved by the High Court yesterday, the final stage in pushing through the bank’s recapitalisation without needing taxpayer support.
Under the deal hedge funds will take around 70 per cent of the equity with the Co-op Group holding the remaining 30 per cent.
Meanwhile retail investors will be given bonds in the group, paying an annual income in line with the shares they are swapping.
Mark Taber, an investor who led a group of 15,000 investors to push for a better deal, said retail investors should be given a more formal say in restructurings in future.
“The reaction of bondholders to the Co-op’s original plan for recapitalisation without bondholder consultation showed that voluntary bail-ins need to be structured consensually with all stakeholders,” said Taber in a letter to MPs.