Co-op bondholders put forward bailout alternative

US hedge funds are among a group of Co-op Bank bondholders that are proposing a debt-for-equity swap as an alternative to the Manchester-based bank's £1.5bn bail out plans.

The group, which includes US hedge funds Aurelius Capital and Silver Point Capital and holds 43% of the bank's lower Tier 2 bonds, has proposed a swap that will give bondholders majority ownership of the bank.

Under the Co-op's plan, the bank would be publicly listed with Co-op Group as the majority shareholder and bondholders owning a min... For the full story register now for free or login below...