Investors in the Co-operative Bank's bonds are in a quandary. Since 17 June, when the mutual lender said it would impose losses on holders of permanent interest-bearing shares (Pibs) and perpetual subordinated bonds, there has been no detail of the scheme.
The bank intends to raise £1bn through the move, part of the £1.5bn it needs to raise to fill the hole in its balance sheet caused primarily by loan losses at the Britannia Building Society with which it merged in 2009. Junior bondholders will be offered new ordinary shares in the bank. The rest of the money is to come largely from asset sales and a bond issue by the parent Co-operative Group.
No response to calls for dialogue