June 28, 2017 / 10:53 AM / 2 months ago

BRIEF-Co-op Group comments on Co-op Bank's $900 mln rescue package

June 28 (Reuters) - Co-operative Group Ltd

* Welcomes announcement from Co-operative Bank on terms of capital raising plan

* Group and trustees have also negotiated with bank a recovery plan for bank section of pace scheme

* Group confirms that it and bank agreed with pace trustees to separate sections of scheme and to remove bank's obligation

* Recovery plan for bank section of pace scheme will see bank contribute 100 mln stg over 10 years and provide initial collateral of 216 mln stg

* Group's shareholding in bank will fall from 20 pct to circa 1 pct

* Promotion of bank services to members of group, will naturally fall away and come to a formal end in 2020

* Relationship agreement between group and bank will naturally fall away and come to a formal end in 2020

* Confirms that it is supportive of plan and intends to vote in favour of capital raising Source text for Eikon: Further company coverage:

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