Co-operative scheme approved by noteholders; sanction hearing Dec. 18

By Caroline Salls

Pittsburgh, Dec. 17 - The Co-operative Group and the Co-operative Bank Liability Management Exercise (LME) said the scheme of arrangement for the Co-operative Bank was approved by holders of dated notes at a Dec. 16 meeting, according to a news release.

Co-operative said that a total of 625 scheme creditors voted, representing 97.63% of the total amount of scheme claims across all of the dated notes. A total of 617 of those creditors voted in favor of the scheme, representing 99.87% of the votes cast.

In addition, the bank said bids to participate in an additional new ordinary shares offer exceeded the total number of additional new ordinary shares to be issued, the additional new ordinary shares offer did not have more than 1,249 investors subscribing for the minimum election amount and sub-purchasing arrangements were not over-subscribed.

The company said completion of the LME now only depends on the scheme being sanctioned by the court at the hearing scheduled for Dec. 18 and becoming effective and unconditional in accordance with its terms.

Co-operative said sanction of the scheme on Wednesday should allow it to complete the LME on Friday.

One of the conditions to completion is that the total subscription price of £125 million for the additional new ordinary shares offer must be fully funded by the relevant investors before settlement, the release said.

Co-operative Bank is a Manchester, England-based bank and financial institution.

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