Co-op Bank bondholders warn of 'investor rebellion' over rescue plan

Top fund managers have expressed anger over Co-operative Bank's £1.5bn rescue plan and warned its risk a full-scale investor rebellion if it fails to deal with its bondholders.

The Telegraph reports hedge funds with holdings in bonds issued by Co-op Bank have told the mutual it is in "cloud cuckoo land" after it refused to hold talks with investors after the release of its half-year results. The results revealed a loss of £559m at the lender. The report said one fund told senior Co-op Bank officials their response was not appropriate for an institution in such a parlous state. “They are being incredibly naive. The results raise legitimate questions for bondholders when assessing the value of their investment and not to be able to discuss them concerns ...