The Co-operative Bank has confirmed that it is in advanced talks with existing investors about a possible rescue, amid reports that the Co-operative Group is concerned about a mooted £200m pension deal.
That leaves the United States hedge funds that own 80% of the bank, Blue Mountain Capital Management, Cyrus Capital Partners, GoldenTree Asset Management and Silver Point, to structure a rescue.
An agreement over the pensions arrangement is necessary for approval of the remainder of the USA hedge funds' rescue plan for the Co-Op Bank.
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The fugitives are still believed to be armed with the 9 mm pistols that they allegedly took from officers after the shooting. How the two inmates managed to reach and overpower the guards remains under investigation, Sills said.
The lender added that discussions are also ongoing regarding the separation of the Co-op Group pension scheme, which would clear the path for a takeover.
"The bank notes recent media speculation and confirms that it is in advanced discussions with a group of existing investors with a view to a prospective equity capital raise and liability management exercise", the lender said.
Meanwhile, the bank said that as well as exploring potential recapitalisation it was also proceeding with its sale process.
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May needs the support of the DUP to govern, after a disastrous election result in which she lost her parliamentary majority. The talks are still ongoing, though there has already been some backlash.
When it offered itself for sale, the Co-op Bank blamed low interest rates and the higher-than-expected cost of its turnaround plan for its failure to meet the Bank's Prudential Regulation Authority (PRA) rules.
In April Co-op Group declared its 20% share of the lender worthless by writing down its entire value to zero, even though it continued discussions with other investors to save the business.
Sources said that the Co-operative Group, which now owns a 20 per cent stake in the bank, was demanding a more robust financial package to protect the 90,000 members of their joint retirement scheme.
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Doctors said Friday the bullet entered at his hip and traveled across his body, causing severe damage to internal organs. Infection remains a considerable risk in the days and weeks during Scalise's extended hospital stay, Sava said.
Since failing the Bank of England's stress test in 2014, Co-op bank has been closely watched by regulators while it tries to restore its capital to an acceptable level.
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