LONDON (Reuters) - Britain’s Co-operative Bank said it is in advanced talks with existing investors over a rescue plan as the struggling lender seeks a solution that would ward off the need for state intervention.
The bank said on Monday that it also continues to pursue a sale process and is in talks with the Bank of England’s Prudential Regulation Authority after struggling to meet its regulatory capital requirements.
The lender said in a statement it “is in advanced discussions with a group of existing investors with a view to a prospective equity capital raise and liability management exercise.”
Co-operative Bank, which put itself up for sale in February, nearly collapsed in 2013 after losses from problem real estate loans and has been struggling to rebuild its financial health.
Reporting By Andrew MacAskill; Editing by Rachel Armstrong