The American hedge fund owners of the Co-operative Bank are expected to stump up £300m as part of a rescue deal for the troubled former mutual.
Silver Point Capital, Golden Tree Asset Management and other vulture funds are in “pole position” to take full ownership of the bank, according to City sources.
The cash injection will come as welcome news to the self-styled ethical bank, which is facing extinction as a result of insufficient capital levels and years of crushing losses.
The repayment of a £400m bond due in September has piled pressure on the bank’s owners to find an urgent solution. Debt markets typically dry up in summer.
“The shape of the deal is expected in the coming weeks. The hedge funds may not…