Virgin Money has withdrawn from potential takeover of the Co-op Bank. The bank has been struggling for some time to meet the Bank of England’s capital requirements ahead of a looming deadline.
However, Co-op Bank has decided to continue talks with hedge funds shareholders about a financial restructuring.
Latest developments indicate that there is a chance that the bank receives funds from its existing bondholders or new investors, rather than being acquired through a conventional takeover.
Virgin Money had been seen as the most likely bidder for the Co-op Bank, but the prospects had diminished in recent weeks with the latter's decision to hire advisers to work on a debt restructuring.
Sources underscore that the negotiations between Virgin Money and the Co-op Bank could still be revived. US’s Cyrus Capital Partners and Blue Mountain Capital Management are purportedly among the investors that the bank has been negotiating with. They are being represented, alongside GoldenTree Asset Management and Silver Point, by PJT Partners.
Read more at Sky News.