LONDON – Troubled lender Co-operative Bank says previous plans to boost its capital by 1.5 billion pounds ($2.3 billion) will likely change as it holds talks with various creditor groups.
The announcement Monday comes as the bank seeks to balance the expectations of various parties while maintaining the customer-owned lender’s “ethical focus.”
Co-operative Group, Britain’s biggest mutual business, announced a rescue plan for the bank this year that would bolster its balance sheet and meet new capital requirements by converting some bonds into stock. The shares will be listed on the London Stock Exchange.
However, the bank said that the plan continues to evolve and that it cannot offer more detail now.
The bank’s difficulties arise from poor commercial loans taken on in 2009, when it merged with Britannia building society.