Bondholders seek to avoid debt restructure that will cause them losses

The Co-operative Bank is facing pressure from a group of bondholders to rethink its debt restructuring plan.

The bondholders, who stand to make losses from the restructuring, want the bank to consider alternatives to the plan, aimed at plugging the £1.5bn hole in its finances.

The group has already sold its life insurance arm to Royal London as part of efforts to shore up the bank’s finances, and is still seeking a buyer for its general insurance unit.

Former RSA chief executive Andy Haste is rumoured to be looking to buy the general insurance business with backing from private equity house Advent.

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