Lloyds Wins Court Approval to Redeem $5 Billion CoCo Bonds
By Kit Chellel - 10 dic 2015, 11:14:59
Lloyds Banking Group Plc won approval from a London appeals court for early redemption of as much as 3.3 billion pounds ($5 billion) of contingent capital bonds.
Retail Investors
“It’s an appalling and surprising decision by the appeal court, clearly favoring Lloyds even after they admitted errors in the drafting of the notes,” said Gary Kirk, a partner at TwentyFour Asset Management, a former investor in the notes. “The retail investor has been treated incredibly badly and I’d be surprised if that was the last we heard of them.”
The fact that some noteholders are retail investors isn’t relevant, said another appeal judge Elizabeth Gloster. They should have understood the risk that the status of the ECNs might change.
The investors can appeal only if the U.K. Supreme Court agrees to hear the case.
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